SCHEME INFORMATION DOCUMENT QUANTUM TAX SAVING FUND (An Open-ended Equity Linked Savings Scheme)

Transcription

1 SCHEME INFORMATION DOCUMENT QUANTUM TAX SAVING FUND (An Open-ended Equity Linked Savings Scheme) Continuous Offer of Units at NAV Based Prices MUTUAL FUND TRUSTEE SPONSOR INVESTMENT MANAGER Quantum Mutual Fund. 505, Regent Chambers, 5th Floor, Nariman Point, Mumbai Quantum Trustee Company Private Ltd. 505, Regent Chambers, 5th Floor, Nariman Point, Mumbai Quantum Advisors Private Ltd , Regent Chambers, 5th Floor, Nariman Point, Mumbai Quantum Asset Management Company Private Ltd. 505, Regent Chambers, 5th Floor, Nariman Point, Mumbai PRODUCT LABEL This product is suitable for investors who are seeking* Riskometer Long term capital appreciation Investments in equity and equity related securities of companies in S&P BSE 200 index and to save tax u/s 80 C of the Income Tax Act. Investments in this product are subject to lock in period of 3 years. Investors understand that their principal will be at Moderately High Risk * Investors should consult their financial advisers if in doubt about whether the product is suitable for them. The particulars of the Scheme have been prepared in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date, and filed with SEBI, along with a Due Diligence Certificate from the AMC. The Units being offered for public subscription have not been approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the Scheme Information Document. The Scheme Information Document sets forth concisely the information about the scheme that a prospective investor ought to know before investing. Before investing, investors should also ascertain about any further changes to this Scheme Information Document after the date of this Document from the Mutual Fund / Investor Service Centres / Website / Distributors or Brokers. The investors are advised to refer to the Statement of Additional Information (SAI) for details of Quantum Mutual Fund, Tax and Legal issues and general information on / SAI is incorporated by reference and is legally a part of the Scheme Information Document. For a free copy of the current SAI, please contact your nearest Investor Service Centre or log on to our website, / The Scheme Information Document (SID) should be read in conjunction with the SAI and not in isolation. This Scheme Information Document is dated May 27, Quantum Asset Management Company Private Limited Regd. office - 505, Regent Chambers, 5th Floor, Nariman Point, Mumbai , India Toll Free No.: / , Telephone No.: , 0 Toll Free Fax No.: Customercare@QuantumAMC.com, Website: CIN: U65990MH2005PTC156152

2 TABLE OF CONTENTS PARTICULARS PAGE NO. HIGHLIGHTS / SUMMARY OF THE SCHEME 2 SECTION I-INTRODUCTION A. RISK FACTORS B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME C. SPECIAL CONSIDERATIONS D. DEFINITIONS E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY SECTION II-INFORMATION ABOUT THE SCHEME A. TYPE OF THE SCHEME B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? D. WHERE WILL THE SCHEME INVEST? E. WHAT ARE THE INVESTMENT STRATEGIES? F. FUNDAMENTAL ATTRIBUTES G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? H. WHO MANAGES THE SCHEME? I. WHAT ARE THE INVESTMENT RESTRICTIONS? J. HOW HAS THE SCHEME PERFORMED? K. SCHEME PORTFOLIO HOLDINGS L. AGGREGATE INVESTMENT IN THE SCHEME SECTION III - UNITS AND OFFER A. NEW FUND OFFER B. ONGOING OFFER DETAILS C. PERIODIC DISCLOSURES D. COMPUTATION OF NAV SECTION IV - FEES AND EXPENSES A. NEW FUND OFFER (NFO) EXPENSES B. ANNUAL SCHEME RECURRING EXPENSES C. LOAD STRUCTURE D. TRANSACTION CHARGES E. WAIVER OF LOAD FOR DIRECT APPLICATIONS SECTION V - RIGHTS OF UNITHOLDERS 46 SECTION VI - OTHER MATTERS PENALTIES & PENDING LITIGATIONS 46 1

3 HIGHLIGHTS / SUMMARY OF THE SCHEME Type of Scheme An Open-ended Equity Linked Savings Scheme with a lock-in period of 3 years. Investment objective Liquidity The investment objective of the scheme is to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the S&P BSE 200 Index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets. The Scheme offers purchases and redemptions of units on all Business Days on an ongoing basis at NAV based prices. As per the ELSS, the Units issued under the Quantum Tax Savings Fund (QTSF) can be redeemed, transferred, assigned or pledged only after a period of 3 (three) years from the date of allotment of the Units. Redemption The redemption or repurchase proceeds shall be dispatched / credited to the registered bank account of the unitholders within 10 business days from the date of redemption or repurchase. Lock- in period Redemption of Units can be made only after a period of three years (lock-in period) from the date of allotment of Units proposed to be redeemed as prescribed in the Equity Linked Savings Scheme, Benchmark Transparency/NAV Disclosure The Scheme's performance will be benchmarked against S&P BSE 30 Total Return Index. NAV shall be calculated and disclosed for every Business Day. AMC shall update the NAV on the website of AMFI by 9.00 p.m. on every Business Day and also on the Fund s website / NAV of the Scheme shall be published at least in two daily newspapers every Business Day in accordance with SEBI (MF) Regulations, Investors may obtain NAV information on any Business Day by calling the office of the AMC or any of the Investor Service Centres. Portfolio Disclosure The Fund shall before the expiry of 1 month from the close of each half year, that is as on 31 March and 30 September, publish a complete statement of the scheme portfolio by way of an advertisement in one English daily newspaper circulating in the whole of India and in a newspaper published in the language of the region where the Head Office of the Fund is situated or send to the Unitholders a complete statement of Schemes portfolios and shall also update the same on the AMC's website at / and on AMFI's website at in the prescribed format before the expiry of one month from the close of each half year. Further, the monthly portfolio of the scheme (along with ISIN) shall also be made available on the website of The Fund/ AMC / on or before tenth day of the succeeding month in user - friendly and downloadable format. Half Yearly Results The Fund shall within one month from the close of each half year, (i.e. 31st March and on 30th September), host a soft copy of its unaudited financial results on its website ( / Further, the Fund shall publish an advertisement disclosing the hosting of such unaudited half yearly financial results on their website, in at least one national English daily newspaper having nationwide circulation and in newspaper having wide circulation published in the language of the region where the Head 2

4 Load Structure Office of the Mutual Fund is situated. Entry Load : Not applicable In terms of SEBI circular no. SEBI/IMD/CIR No. 4/ /09 dated June 30, 2009 it has been notified that, w.e.f. August 01, 2009 there will be no entry load charged to the schemes of the Mutual Fund and the upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor. Quantum Mutual Fund does not charge Entry Load since inception. Exit Load : NIL Transaction Charges In accordance with the SEBI Circular No. Cir / IMD / DF/13/2011 dated August 22, 2011, the AMC is allowed to deduct transaction charges of `100 for existing investors and `150 for a first time investor per subscription of `10,000 /- and above for the transaction / application received through distributors. The transaction charges shall be deducted by the AMC from the subscription amount received from the investor and paid to the distributor and the balance will be invested in the Scheme. Investors are requested to note that Quantum Mutual Fund is a direct to investor s Mutual Fund and no transaction charges shall be deducted from the investment amount for transactions / applications received from the distributor and full subscription amount will be invested in the Scheme. Cash Investments In accordance with SEBI circulars dated September 13, 2012 and May 22, 2014, it is permitted to accept cash transactions to the extent of ` 50,000/- subject to compliance with Prevention of Money Laundering Act, 2002 and Rules framed there under and the SEBI Circular(s) on Anti Money Laundering (AML) and other applicable AML rules, regulations and guidelines. The Asset Management Company is presently evaluating systems and controls and is in discussions with bank(s) to accept Cash Investment in the Scheme. The information will be provided to investors in this regard as and when such facility will be available. Option / Plan The Scheme offers two options - Growth Option & Dividend Option Presently, the Scheme does not offer any Plan. However, the Trustee reserve the right to introduce / modify investment Plans / Options under the Scheme at a future date in accordance with SEBI (MF) Regulations. Separate Plan For Direct Investment In accordance with the SEBI Circular No. Cir / IMD / DF/21/2012 dated September 13, 2012, the Mutual Fund/AMC shall provide a separate plan for direct investment i.e. investments not routed through a distributor and such separate expense plan shall have lower expense ratio excluding distribution expenses, commission etc., and no commission shall be paid from such plans and the plan shall also have a separate NAV. Investors are requested to note that Quantum Mutual Fund is a direct to investor s Mutual Fund and does not charge / debit any distribution expenses to the schemes and does not pay any upfront or trail commission to distributors for investment routed through distributor whether empanelled with Quantum Mutual Fund or not since its inception. Further, Quantum Mutual Fund does not deduct Transaction Charges as allowed under SEBI Circular No. Cir / IMD / DF/13/2011 dated August 22,

5 Quantum Mutual Fund shall continue not charging / debiting any distribution expenses to the schemes and does not pay any upfront or trail commission to distributors for investment routed through distributor whether empanelled with Quantum Mutual Fund or not. Therefore, the Scheme shall not have a Separate Plan for receiving any investment applications either through distributors or directly from investors, and shall not declare separate NAV for application either through distributors or directly from investors for the Scheme. Minimum Application Amount ( For All Options) Minimum Additional Investment Amount ( For All Options) Minimum Redemption Amount (For All Options) ` 500/- and multiples of ` 500/- thereafter. ` 500/- and multiples of ` 500/- thereafter. ` 500/- or 50 Units Lock- in period Redemption of Units can be made only after a period of three years (lock-in period) from the date of allotment of Units proposed to be redeemed as prescribed in the ELSS. Option to hold units in Dematerialized Mode The unit holders are given an option to hold the units in physical mode or in dematerialized mode. The Investor intending to hold the units in dematerialized mode will be required to have a beneficiary account with a Depository Participant and will be required to mention the DP s Name, DP ID No. and Beneficiary Account No. with the DP in the application form at the time of subscription / additional purchase of the units of the Scheme. It may be noted that in case of option to hold units in dematerialized mode under Systematic Investment Plan (SIP), the units will be credited to Investor s demat account on weekly basis on every Monday subject to realization of funds in the last week. For eg. Units will be credited to investor s demat account on following Monday for realization status of funds received in the last week from Monday to Friday. It may be noted that the facilities viz. Switch in and out/ Systematic Withdrawal Plan (SWP) / Systematic Transfer Plan (STP) are currently not available in the dematerialized mode. SYSTEMATIC INVESTMENT PLAN (SIP) Frequencies Daily Weekly Fortnightly Monthly Quarterly Available Under SIP Minimum Amount ` 500/- and in multiples of ` 500/- thereafter Minimum No. of Installments / Instructions Frequency of dates ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter Daily - All Business Days Weekly 7,15,21,28 ` 500/- and in multiples of ` 500/- thereafter 4

6 Fortnightly 5&21 OR 7&25 Monthly / Quarterly 5,7,15,21,25,28 SYSTEMATIC TRANSFER PLAN (STP) after completion of lock in period of 3 years from the date of investment Frequencies Available Under STP Minimum Amount Minimum No. of Installments / Instructions Frequency of dates Daily Weekly Fortnightly Monthly Quarterly ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter Daily - All Business Days ` 500/- and in multiples of ` 500/- thereafter Weekly 7,15,21,28 Fortnightly 5&21 OR 7&25 Monthly / Quarterly 5,7,15,21,25,28 Minimum Balance to Start STP ` 5000/- SYSTEMATIC WITHDRAWAL PLAN (SWP) - after completion of lock in period of 3 years from the date of investment Frequencies Available Under SWP Weekly Fortnightly Monthly Quarterly Minimum Amount ` 500/- and in ` 500/- and in ` 500/- and in ` 500/- and in multiples of ` multiples of ` multiples of ` multiples of ` 500/- thereafter 500/- thereafter 500/- thereafter 500/- thereafter Minimum No. of Installments / Instructions Frequency of dates Weekly 7,15,21,28 Fortnightly 5&21 OR 7&25 Monthly / Quarterly 5,7,15,21,25,28 Minimum Balance to Start SWP ` 5000/- 5

7 I. INTRODUCTION A. RISK FACTORS Standard Risk Factors: Investment in Mutual Fund Units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. As the price / value / interest rates of the securities in which the scheme invests fluctuate, the value of your investment in the scheme may go up or down. The value of investments may be affected, inter-alia, by changes in the market, interest rates, changes in credit rating, trading volumes, settlement periods and transfer procedures; the NAV is also exposed to Price/Interest- Rate Risk and Credit Risk and may be affected inter-alia, by government policy, volatility and liquidity in the money markets and pressure on the exchange rate of the rupee. Past performance of the Sponsor / AMC / Mutual Fund does not guarantee future performance of the scheme. Quantum Tax Saving Fund is the name of scheme. The name of the scheme does not in any manner indicate either the quality of the scheme or its future prospects and returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Scheme. The sponsor is not responsible or liable for any loss resulting from the operation of the scheme beyond the initial contribution of `1,00,000/- made by it towards setting up the Fund. The present scheme is not a guaranteed or an assured return scheme Scheme Specific Risk Factors Risk Factors related to Equity Investments By virtue of requirements under the ELSS, Units issued under the QTSF will not be redeemed until the expiry of 3 (three) years from the date of their allotment. The ability of an investor to realise returns on investments in QTSF is consequently restricted for the first three years. Redemption will be made prior to the expiry of the aforesaid 3 (three) year period only in the event of the death of a Unit Holder, subject to the Units having been held for a period of 1 (one) year from the date of their allotment. The Scheme proposes to invest primarily in equity and equity related securities. Equity Securities and equity-related Securities are volatile and prone to price fluctuations on a daily basis. The liquidity of investments made by the Scheme may be restricted by trading volumes and settlement periods. This may impact the ability of the Unit Holders to redeem their Units. In view of this, the Trustee has the right, in its sole discretion to limit Redemptions (including suspending Redemption) under certain circumstances. Settlement periods may be extended significantly by unforeseen circumstances. The inability of the Scheme to make intended Securities purchases, due to settlement problems, could cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell Securities held in the Scheme's portfolio could result, at times, in potential losses to the Scheme, should there be a subsequent decline in the value of Securities held in the Scheme's portfolio. Investments in equity and equity related Securities involve a degree of risk and investors should not invest in the Scheme unless they can afford to take the risk of losing their investment. The liquidity and valuation of the Scheme's investments due to its holdings of unlisted Securities may be affected if they have to be sold prior to the target date for disinvestment. Securities which are not quoted on the stock exchanges are inherently illiquid in nature and carry a larger liquidity risk in comparison with Securities that are listed on the exchanges or offer other exit options to the investors, including put options. The AMC may choose to invest in unlisted Securities that offer attractive yields within the regulatory limit. This may however increase the risk of the portfolio The Scheme has the power to invest in securities which are not quoted on a stock exchange ("unlisted securities") which in general are subject to greater price fluctuations, less liquidity and greater risk than those which are traded in the open market. Unlisted securities may lack a liquid secondary market and there can be no assurance that the Schemes will realise its investments in unlisted securities at a fair value. While securities that are listed on the stock exchange carry lower liquidity risk, the ability to sell these investments is limited by the overall trading volume on the stock exchanges. Risk Factors Associated with Fixed Income and Money Market Instruments: Interest Rate Risk/Market Risk: Changes in interest rate may affect the Scheme s net asset value. Generally the prices of instruments increase as interest rates decline and decrease as interest rates rise. Prices of long-term securities fluctuate more in response to such interest rate changes than shortterm securities. Indian debt and government securities markets can be volatile leading to the 6

8 possibility of price movements up or down in fixed income securities and thereby to possible movements in the NAV. Credit Risk or Default Risk: Credit risk or Default risk refers to the risk that an issuer of a debt instrument may default (i.e. the issuer will be unable to make timely principal and interest payments on the security). Because of this risk, bonds issued by non-government agencies are sold at a higher yield above those offered on Government Securities which are sovereign obligations and free of credit risk. Normally, the value of a debt instrument will fluctuate depending upon the changes in the perceived level of credit risk as well as any actual event of default. The greater the credit risk, the greater the yield required for someone to be compensated for the increased risk. Liquidity and Settlement Risks This refers to the ease at which a security can be sold at or near its true value. The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by a dealer. Different segments of the financial markets have different settlement cycle/periods and such settlement cycle/periods may be impacted by unforeseen circumstances, leading to Settlement Risk. The liquidity of the Scheme s investments may be inherently restricted by trading volumes, transfer procedures and settlement periods. Reduced liquidity in the secondary market may have an adverse impact on market price and the Scheme s ability to dispose of particular securities, when necessary, to meet the Scheme s liquidity needs or in response to a specific economic event or during restructuring of the Scheme s investment portfolio Re-investment Risk: Investments in fixed income securities may carry re-investment risk as interest rates prevailing on the interest or maturity due dates may differ from the original coupon of the bond. Consequently, the proceeds may get invested at a lower rate. This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme or from maturities in the Scheme are reinvested. The additional income from reinvestment is the interest on interest component. The risk refers to the fall in the rate for reinvestment of interim cash flows. Performance Risk: The value of, and income from, an investment in the Scheme can decrease as well as increase, depending on a variety of factors which may affect the values and income generated by the Scheme s portfolio of securities. The returns of the Scheme s investments are based on the current yields of the securities, which may be affected generally by factors affecting capital markets such as price and volume, volatility in the stock markets, interest rates, currency exchange rates, foreign investment, changes in Government and Reserve Bank of India policy, taxation, political, economic or other developments, closure of the Stock Exchanges etc. Investors should understand that the investment pattern indicated, in line with prevailing market conditions, is only a hypothetical example as all investments involve risk and there is no assurance that the Scheme s investment objective will be attained or that the Scheme shall be in a position to maintain the model percentage of investment pattern particularly under exceptional circumstances. The Scheme will endeavour to invest in highly researched securities offering relative yield for the commensurate risks. However the erosion in the value of the investments/portfolio in the case of the debt markets passing through a bearish phase is a distinct possibility. Risks associated with Securities Lending and Short Selling Securities Lending: It may be noted that this activity would have the inherent probability of collateral value drastically falling in times of strong downward market trends, rendering the value of collateral inadequate until such time as that diminution in value is replenished by additional security. It is also possible that the borrowing party and/or the approved intermediary may suddenly suffer severe business setback and become unable to honour its commitments. This, along with a simultaneous fall in value of collateral would render potential loss to the Scheme. Besides, there can also be temporary illiquidity of the securities that are lent out and the Scheme will not be able to sell such lent out securities until they are returned. Short selling: Scheme may enter into short selling transactions, subject to SEBI and RBI regulations in the matter. This will be done if the fund management team is of the view that there exists an opportunity to make trading gains. Calls for short selling will be taken after considering the liquidity and volatility of the security as well as the interest rate view of the fund management team. There can be a loss in such a transaction if the price of the security goes up instead of falling down. B. REQUIREMENT OF MINIMUM INVESTORS IN THE SCHEME The Scheme/Plan shall have a minimum of 20 investors and no single investor shall account for more than 25% of the corpus of the Scheme/Plan(s). However, if such limit is breached during the NFO of the Scheme, the Fund will endeavor to ensure that within a period of three months or the end of the 7

9 succeeding calendar quarter from the close of the NFO of the Scheme, whichever is earlier, the Scheme complies with these two conditions. In case the Scheme / Plan(s) does not have a minimum of 20 investors in the stipulated period, the provisions of Regulation 39(2)(c) of the SEBI (Mutual Funds) Regulations would become applicable automatically without any reference from SEBI and accordingly the Scheme / Plan(s) shall be wound up and the units would be redeemed at applicable NAV. The two conditions mentioned above shall also be complied within each subsequent calendar quarter thereafter, on an average basis, as specified by SEBI. If there is a breach of the 25% limit by any investor over the quarter, a rebalancing period of one month would be allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid 15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of the notice period. The Fund shall adhere to the requirements prescribed by SEBI from time to time in this regard. C. SPECIAL CONSIDERATIONS Quantum Mutual Fund Profile: Quantum Mutual Fund started its journey in With the investor as their primary focus, and the investor s benefit as their leading priority, Quantum Mutual Fund refused to adhere to the commission paying style for promoting its Schemes. With this ideology in mind, Quantum Mutual Fund was established as India s 1 st direct-to-investor mutual fund. Quantum is a Low Cost fund that brings its investors additional cost savings, by offering them one of the lowest Expense Ratios in the industry. As a direct-to-investor fund house, Quantum Mutual Fund uses the online medium to reach to investors directly. With the launch of the industry s 1 st completely paperless Invest Online section, Quantum is looking at newer ways to make investing simple and leverage the potential of the internet and the power of technology. Considerations: Quantum Asset Management Private Limited (AMC) has received the approvals / No Objections from SEBI to provided Research Services in Equities and Fixed Income, and Research / Advisory Services in Multi Asset Allocation and Emerging Markets in the Alternative Investment field to Quantum Advisors Private Limited (Sponsor) and QIEF Management LLC (QIEF) on commercial basis. The AMC is providing Research Service in Equities and Fixed Income to the Sponsor and QIEF and Research / Advisory Services in Multi Asset Allocation to QIEF which is non-binding and nondiscretionary in nature and not in conflict of interest with the activities of Quantum Mutual Fund. The AMC has process in place to prohibit access to inside information of various activities as envisaged under Regulation 24(b) of SEBI (Mutual Funds) Regulations, 1996 by segregating the Key Personnel, System and Back Office, Bank Account activity wise. Mutual funds being vehicles of securities investments are subject to market and other risks and there can be no guarantee against loss resulting from investing in the Scheme. The various factors which impact the value of the Schemes' investments include, but are not limited to, fluctuations in the capital markets, fluctuations in interest rates, prevailing political and economic environment, changes in government policy, factors specific to the issuer of the securities, tax laws, liquidity of the underlying instruments, settlement periods, trading volumes, etc. The past performance of the Sponsors and their affiliates/associates is not indicative of the future performance of the Scheme. Investment decisions made by the AMC may not always be profitable. From time to time and subject to the Regulations, the Sponsors, the mutual funds and investment companies managed by them, their affiliates, their associate companies, subsidiaries of the Sponsors and the AMC may invest either directly or indirectly in the Scheme. The funds managed by these affiliates, associates, the sponsors, subsidiaries of the Sponsors and/or the AMC may acquire a substantial portion of the Scheme s Units and collectively constitute a major Investor in the Scheme. Accordingly, Repurchase/Redemption of Units held by such funds, affiliates/associates and Sponsors may have an adverse impact on the Units of the Scheme because the timing of such Repurchase/Redemption may impact the ability of the other Unitholders to redeem their Units. The Scheme has the power to invest in securities which are not quoted on a stock exchange ("unlisted securities") which in general are subject to greater price fluctuations, less liquidity and greater risk than those which are traded in the open market. Unlisted securities may lack a liquid secondary market and there can be no assurance that the Schemes will realise its investments in unlisted securities at a fair value. While securities that are listed on the stock exchange carry lower liquidity risk, the ability to sell these investments is limited by the overall trading volume on the stock exchanges. Given that the liquidity of the investments made by the Scheme could, at times, be restricted by trading volumes and settlement periods, the time taken by the Mutual Fund for Repurchase/Redemption of Units 8

10 may be significant in the event of an inordinately large number of Repurchase/Redemption requests or a restructuring of the Scheme. In view of the above, the Trustee has the right, in its sole discretion, to limit Repurchase/Redemptions (including suspending Repurchases/Redemptions) under certain circumstances. In case the Scheme undertakes stock lending under the SEBI Regulations, the Scheme may, at times, be exposed to counter party risk. Certain focus areas are already enjoying favourable tax treatment by Government of India and the Scheme may also receive favourable tax treatment in other focus areas. If these tax benefits are removed or amended, it is possible that the changes may have a material adverse impact on the companies' revenue and earnings. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any of the tax consequences that may arise, in the event that the Scheme is wound up for the reasons and in the manner provided for in the SAI. Repurchase/Redemption by the Unitholder due to change in the fundamental attributes of the Scheme or due to any other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any such tax consequences that may arise. The tax benefits described in this Scheme Information Document (SID) are as available as on the date of issue of this SID under the present taxation laws and are available subject to relevant conditions. The information given is included only for general purpose and is based on advise received by the AMC regarding the law and practice currently in force in India and the Unitholders should be aware that the relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee that the tax position or the proposed tax position prevailing at the time of an investment in the Scheme will endure indefinitely. In view of the individual nature of tax consequences, each Unitholder is advised to consult his/her/their own professional tax advisor. Unitholders in the Scheme are not being offered any guaranteed/assured returns and Investors are advised to consult their Legal/Tax and other Professional Advisors in regard to tax/legal implications relating to their investments in the Scheme and before making decision to invest in or Repurchase the Units. Neither this SID nor the Units have been registered in any jurisdiction. This SID is meant for circulation only in India and therefore has not been registered in any other jurisdiction. The distribution of this SID in certain jurisdictions may be restricted or totally prohibited due to registration requirements and accordingly, persons who come into possession of this SID are required to inform themselves about such regulations/restrictions and to observe any such restrictions and/or compliance requirements. The information herein is not for distribution and does not constitute an offer to buy or sell or the solicitation of any offer to buy or sell any securities or financial instruments in the United States of America ("US") and Canada to or for the benefit of United States persons (being persons resident in the US, corporations, partnerships or other entities created or organised in or under the laws of the US or any person falling within the definition of the term "US Person" under Regulations promulgated under the US Securities Act of 1933, as amended) and Canadian persons. No person has been authorised to issue any advertisement or to give any information or to make any representations other than that contained in this SID. Circulars in connection with this offering not authorised by the Mutual Fund and any information or representations not contained herein must not be relied upon as having been authorised by the Mutual Fund. Investors should study this SID carefully in its entirety and should not construe the contents hereof as advice relating to legal, taxation, investment or any other matters. Investors are advised to consult their legal, tax, investment and other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or repurchasing Units, before making a decision to invest/repurchase Units. The Mutual Fund may disclose details of the Unitholder s account and transactions thereunder to the Bankers / third party as may be necessary for the purpose of effecting payments to the Unitholder / verifying unitholder s account. In terms of the Prevention of Money Laundering Act 2002, the Rules issued there under and the guidelines/circulars issued by SEBI regarding the Anti Money Laundering (AML Laws), all intermediaries, including Mutual Funds, have to formulate and implement a client identification programme, verify and maintain the record of identify and address(es) of investors. If after due diligence, the AMC believes that any transaction is suspicious in nature as regards money laundering, failure to provide required documentation, information, etc., the AMC shall have absolute discretion to report such suspicious transactions to 9

11 FIU-IND and / or to freeze the folios of the investor(s), reject any application(s) / allotment of units and effect mandatory redemption of unit holdings of the investor(s) at the applicable NAV subject to payment of exit load, if any. In terms of Foreign Account Tax Compliance Act (FATCA), the AMC / Mutual Fund will be required to undertake due diligence process and identify US reportable accounts and collect such information / documentary evidences of the US and / or non-us status of its investors / Unit holders and disclose such information (through its agents or service providers) as far as may be legally permitted about the holdings, investment returns and / or to US Internal Revenue Service (IRS) or the Indian Tax Authorities, as the case may be for the purpose of onward transmission to the IRS under FATCA. The AMC / Mutual Fund will also disclose such information of investors / Unit holders who are not US Persons at the time of investments but subsequently identified by the AMC / Mutual Fund as US Persons in terms of FATCA. FATCA due diligence will be directed at each investor / Unit holder (including joint investor) and on being identified as a reportable person / specified US person, all the folios will be reported. In case of folios with joint holders, the entire account value of the investment portfolio will be attributable under each such reportable person. An investor/unit holder will therefore be required to comply with the request of the AMC / Mutual Fund to furnish such information as and when sought by the AMC for the AMC / Mutual Fund to comply with the information reporting requirements stated in IGA and circulars issued by SEBI / AMFI in this regard. The information disclosed may include (but is not limited to) the identity of the investors and their direct or indirect beneficiaries, beneficial owners and controlling persons. Investors / Unit holders should consult their own tax advisors regarding FATCA requirements with respect to their own situation. If the Investors / Unit Holders will not provide the FATCA self declaration and documentation for due diligence, then the AMC / Mutual Fund will freeze / close the investor / unitholders account and then report their information as reportable accounts to comply with the requirements of IGA. D. DEFINITIONS In this Scheme Information Document, the following words and expressions shall have the meaning specified herein, unless the context otherwise requires: AMC or Asset Management Company or Investment Manager Quantum Asset Management Company Private Limited, incorporated under the provisions of the Companies Act, 1956 and approved by the Securities and Exchange Board of India to act as the Asset Management Company for the Scheme(s) of Quantum Mutual Fund. Applicable NAV The Net Asset Value applicable for subscription / Redemptions / Repurchase / Switches etc., based on the Business Day and relevant cut-off times on which the application is accepted at the official point of acceptance. Business Day A day other than: i. Saturday and Sunday; or ii. iii. iv. A day on which the banks in Mumbai and / RBI are closed for business /clearing; or A day on which the Stock Exchange, Mumbai and / or National Stock Exchange are closed; or A day, which is a public and/or bank holiday at a Investor Service Centre (ISC) where the application is received; or v. A day on which Sale and Repurchase of Units is suspended by the AMC; or vi. vii. A day on which normal business cannot be transacted due to storms, floods, bandhs, strikes or such other events as the AMC may specify from time to time. A day on which the money markets are closed / not accessible. 10

12 The AMC reserves the right to declare any day as a Business Day or otherwise at any or all ISCs. "Business Hours" Certificate of Deposits or CD s Collateralized Borrowing and Lending Obligation or CBLO Consolidated Account Statement (CAS) Commercial Paper or CP s Presently 9.30 a.m. to 6.00 p.m. on any Business Day or such other time as may be decided by the Asset Management Company from time to time and the same may be different for different ISCs. CD s are short term borrowings by Banks. CD s can be issued for maturities between 7 days up to a year from the date of issue. CBLO s are discounted money market instruments available in electronic book entry form for the maturity period ranging from one day to ninety days. It is a product developed by CCIL (Clearing Corporation Of India Ltd. Consolidated Account Statement is a statement containing details relating to all the transaction across all schemes of all mutual funds viz. purchase, redemption, switch, dividend payout, dividend reinvestment, systematic investment plan, systematic withdrawal plan, systematic transfer Plan, etc. CP s are short term instrument to enable non-banking companies to borrow funds for the short term. It is an unsecured money market instrument issued in the form of promissory note. CP s can be issued for maturities between 7 days up to a year from the date of issue. ELSS Custodian Depository Depository Participant Load Entry Load or Sales Load Exit Load or Repurchase Load or Redemption Load FATCA "Dividend" FII Equity Linked Savings Scheme, 2005, as notified by the Ministry of Finance (Department of Economic Affairs) vide notification dated 03 November 2005 and amended vide notification dated 13 December A person who has been granted a certificate of registration to carry on the business of custodian of securities under the Securities and Exchange Board of India (Custodian of Securities) Regulations 1996, which for the time being is Deutsche Bank AG, Mumbai. A body corporate as defined in the Depositories Act, 1996 and includes National Securities Depository Limited (NSDL) and Central Depository Systems Limited (CDSL). A person registered as such under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, A charge that may be levied as a percentage of NAV at the time of entry into the scheme or at the time of exit from the scheme. One time charge that investors pay at the time of entry into the Scheme. Presently, entry load cannot be charged by mutual fund schemes. Load on Repurchase / Redemption / Switch out of Units. Foreign Account Tax Compliance Act (FATCA) is a legislation to help counter tax evasion in the United States. FATCA has been introduced by the United States Department of Treasury and the U.S. Internal Revenue Service to encourage better tax compliance by preventing U.S. Persons from using banks and financial institutions to avoid U.S. taxation on their global income and assets. FATCA legislation will affect both individual and non-individual investors who are treated as 'U.S. Person' for US tax purposes. Income distributed under the Scheme on the Units. Foreign Institutional Investor, registered with SEBI under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995, as amended from time to time. 11

13 "Foreign Portfolio Investor" or "FPI" Investment Management Agreement Investor Service Centres or ISCs or Official Points of acceptance of transactions Options Mutual Fund or the Fund FPI means a person who satisfies the eligibility criteria prescribed under Regulation 4 and has been registered under Chapter II of Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, The Investment Management Agreement dated 7th October, 2005 entered into between Quantum Trustee Company Private Limited and Quantum Asset Management Company Private Limited, as amended from time to time. Office of Quantum Asset Management Company Private Ltd. or Designated branches of Karvy Computershare Pvt. Ltd. (Karvy) and such other centres / offices as may be designated by the AMC/ Karvy from time to time. All these locations are official points of acceptance of transactions and cut-off time as mentioned in the SID shall be reckoned at these official points. The Scheme offers two options - Growth Option & Dividend Option Quantum Mutual Fund, a trust set up under the provisions of the Indian Trusts Act, 1882 and registered with SEBI under the Securities and Exchange Board of India (Mutual Funds) Regulations, vide Registration No. MF/051/05/02 dated December 2, Money Market Instruments NAV or Net Asset Value NRE Account NRI NRSR Account NRO Account Open Ended Scheme Commercial papers, commercial bills, treasury bills, Government securities having an unexpired maturity upto one year, call or notice money, certificate of deposit, usance bills, CBLO and any other like instruments as specified by the Reserve Bank of India from time to time. Net Asset Value per Unit of the Scheme, calculated in the manner described in this SID or as may be prescribed by the SEBI Regulations from time to time. Non-Resident External Account. A Non Resident Indian (NRI) is a person resident outside India, who is a citizen of India or is a person of Indian origin. Non-Resident Special Rupee Account. Non-Resident Ordinary Rupee Scheme of a mutual fund, which offers Units for sale without specifying any duration for, Redemption / Repurchase. RBI Reserve Bank of India, established under the Reserve Bank of India Act, Registrar and Transfer Agent Karvy Computershare Private Limited (Karvy) registered under the SEBI (Registrars to an Issue and Share Transfer Agents) Regulations 1993, currently acting as the registrar to the Scheme or any other registrar appointed by the AMC from time to time. Repurchase / Repurchase / Redemption of Units of the Scheme as permitted. Redemption Sale / Subscription Sale or allotment of Units to the Unitholder upon subscription by the investor / applicant under the Scheme. Scheme Information Document/SID Statement of Additional Information/SAI Scheme or Quantum This document issued by Quantum Mutual Fund, for inviting subscription to Units of Quantum Tax Saving Fund, as amended from time to time in compliance of the SEBI Regulations. The Statement of Additional Information (SAI) contains details of the Mutual Fund, its constitution, and certain tax, legal and general information. It is incorporated by reference and is legally a part of the SID. Quantum Tax Saving Fund, (including, as the context permits, all the Option(s) 12

14 Tax Saving Fund or QTSF SEBI SEBI Regulations or Regulations Sponsor or Settlor Switch or Lateral Shift Stock Exchanges Systematic Investment Plan or SIP Systematic Transfer Plan or STP Systematic Withdrawal Plan or SWP Trustee Trust Deed Trust Fund Unit Unitholder or Investor or Client under the Scheme). Securities and Exchange Board of India, established under the Securities and Exchange Board of India Act, Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, as amended from time to time. Quantum Advisors Private Limited. Repurchase / Redemption of a unit in any Scheme (including the Options therein) of the Mutual Fund against purchase of a unit in another Scheme (including the options therein) of the Mutual Fund, subject to the applicable load structure and the completion of lock-in period, if any, of the units of the Scheme(s) from where the units are being switched. BSE Limited or The National Stock Exchange of India Limited. A plan enabling investors to save and invest in the Scheme on monthly basis by submitting post-dated cheques / payment instructions. A plan enabling investors to transfer a fixed amount at regular intervals into other schemes of Quantum Mutual Fund. A plan enabling investors to withdraw sums from their unit accounts in the Scheme at regular intervals. Quantum Trustee Company Private Limited, incorporated under the provisions of the Companies Act, 1956 and approved by SEBI to act as Trustee to the Schemes of Quantum Mutual Fund. The Trust Deed dated October 7, 2005 made by and between the Sponsor and Quantum Trustee Company Private Limited ( Trustee ), as amended from time to time, establishing an irrevocable trust, called Quantum Mutual Fund. Amounts settled/contributed by the Sponsor towards the corpus of the Quantum Mutual Fund and additions/ accretions thereto. The interest of the Unitholder which consists of each Unit representing one undivided share in the assets of the Scheme. A person holding Units in the Scheme of the Quantum Mutual Fund offered under this Scheme Information Document. Interpretation For all purposes of this SID, except as otherwise expressly provided or unless the context otherwise requires: The terms defined in this SID include the plural as well as the singular. Pronouns having a masculine or feminine gender shall be deemed to include the other. 13

15 E. DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY A Due Diligence Certificate, duly signed by the Compliance Officer of Quantum Asset Management Company Limited has been submitted to SEBI which reads as follows: DUE DILIGENCE CERTIFICATE It is confirmed that: I. The Scheme Information Document forwarded to SEBI is in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time. II. III. IV. All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc. issued by the Government of India and any other competent authority in this behalf, have been duly complied with. The disclosures made in the Scheme Information Document are true, fair and adequate to enable the Investors to make a well-informed decision regarding investments in the Scheme. Karvy Computershare Private Limited - Registrar & Transfer Agent and Deutsche Bank AG - Custodian are registered with SEBI and their registration is valid as on date. for Quantum Asset Management Company Private Limited Place: Mumbai Date: May 27, 2016 Sd/- Malay Vora Compliance Officer 14

16 II. INFORMTION ABOUT THE SCHEME A. TYPE OF THE SCHEME An Open-ended Equity Linked Savings Scheme B. WHAT IS THE INVESTMENT OBJECTIVE OF THE SCHEME? The investment objective of the Scheme is to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the S&P BSE 200 Index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets. C. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? The investment policies of the Scheme shall be as per SEBI (Mutual Funds) Regulations, 1996, and within the following guideline. The asset allocation under the Scheme, under normal circumstances, will be as follows: Instruments Equity and equityrelated Securities* Debt and money market instruments Indicative Risk Profile allocations (% of Total Assets) Minimu m Maximu m High/Mediu m/low 80% 100% High 0% 20% Low to Medium The Scheme does not intend to make any investments in derivatives, and ADR/GDRs/foreign Securities. However, the Scheme may make investments in derivatives, ADR/GDRs/foreign Securities as and when permitted by the ELSS. The scheme shall not invest in foreign securitized debt. Pending deployment of funds of the Scheme in securities in terms of the investment objectives of the Scheme, the AMC can invest the funds of the Scheme in short-term deposits of scheduled commercial banks. The investments in short term deposits of scheduled commercial banks will be reported to the trustees along with the reasons for the investment which, inter alia, would include comparison with the interest rates offered by other scheduled commercial banks. Further, the AMC will ensure that the reasons for such investments are recorded in the manner prescribed in SEBI Circular MFD/CIR/6/73/2000 dated July 27, 2000 and such investments in short-term deposits are made in line with SEBI Circular SEBI/IMD/CIR No. 1/ /07dated April 16, The above asset allocation is only indicative and may change from time to time, keeping in view the market conditions and applicable rules and regulations. In accordance with the ELSS, investments by the Scheme in equity and equity related Securities will not fall below 80% of the net assets of the Scheme. *Equity related Securities shall mean all those instruments which are permitted as per ELSS Guidelines from time to time and shall include equities, cumulative convertible preference shares and fully convertible debentures and bonds of companies. Investment may also be made in partly convertible issues of debentures and bonds including those issued on rights basis subject to the condition that, as far as possible, the non-convertible portion of the debentures so acquired or subscribed, shall be disinvested within a period of 12 (twelve) months. 15

17 COMPARISON OF EXISTING OPEN ENDED EQUITY SCHEMES Name of the Scheme Quantum Index Fund - ETF Quantum Long Term Equity Fund Asset Allocation Pattern Type of instruments Securities covered by the Nifty 50 Index Money Market Instruments, other short term debt instruments as permitted under SEBI (Mutual Funds) Regulations, 1996 and Liquid Schemes of Mutual Funds Type of instruments Normal Allocation (% of Net Assets) Minimum Maximum Allocation Allocation (% of Net (% of Net Assets) Assets) 90% 100% 0% 10% Normal Allocati on (% of Net Assets) Minimum Allocatio n (% of Net Assets) Maximu m Allocatio n (% of Net Assets) Primary Investment Pattern To invest in stocks of companies comprising Nifty 50 Index. To invest in shares of companies included in BSE-200 Index. Differentiation Open ended Exchange Traded Fund Index Open ended Equity Scheme AUM ` in Crore (As on April 30, 2016) No. of Folios (As on April 30, 2016) ,225 Listed Equity & Equity Related Securities of Companies Unlisted Equity & Equity Related Securities of Companies Money Market Instruments Liquid Schemes of 95% to 99% 0% to 3% 1% to 5% 0% to 5% 65% 99% 0% 5% 1% 35% 0% 5% Mutual Funds For further details on asset allocation, investment pattern and investment strategy please refer to the Scheme Information Document of the respective scheme. CHANGE IN INVESTMENT PATTERN Subject to the SEBI Regulations, the asset allocation pattern indicated above may change from time to time, depending on liquidity considerations or on account of high levels of subscriptions or Repurchase / Redemptions relative to fund size, or upon considerations that optimize returns of the Scheme through investment opportunities or upon various defensive considerations including market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly understood that the percentages 16

18 stated above are only indicative and not absolute. These proportions may vary substantially depending upon the perception of the AMC the intention being at all times to seek to protect the interests of the Unitholders. Such changes in the investment pattern will be for short term and only for defensive considerations. In the event of deviations, the Fund Manager will endeavor to carry out rebalancing within 30 Business Days, justification for the same shall be placed before the Key Employee Investment Committee and reasons for the same shall be recorded in writing.. The Key Employee Investment Committee shall then decide on the course of actions. However, at all the times the portfolio will adhere to the overall investment objectives of the Scheme. D. WHERE WILL THE SCHEME INVEST? The Scheme may invest in the following asset classes, other than foreign securitized debt: (a) Equity and equity-related Securities as stated above. (b) Money market instruments. Investments other than in equity will be made for managing liquidity. The preferred instruments will be money market instruments. Money market instruments include commercial papers, commercial bills, treasury bills, government Securities having an unexpired maturity up to one year, call or notice money, certificates of deposit, usance bills and any other like instruments as specified by the RBI from time to time. (c) Any other Securities / asset class / instruments as permitted under SEBI Regulations. Limits for stock lending are: Currently the Fund shall not be engaged in stock lending and borrowing and investment in securitized debt. It may do so only and as and when permitted under the ELSS/SEBI Regulations/Guidelines. E. WHAT ARE THE INVESTMENT STRATEGIES? Investment Philosophy/Strategy The investment strategy of the Mutual Fund will be to invest in companies it believes are attractively priced in the market when compared to the Investment Manager's valuation of the company. The Investment Manager's valuation will be based on a number of factors, including the Investment Manager's assessment of the skill and expertise of the company's management team and the long term potential for both the company and the sectors in which it operates. Such opportunities may arise for a variety of reasons ranging from the belief that the markets have undervalued a company, to an assessment that there is opportunity for significant profit or market share growth given the dynamics of the sector a company operates in, or as a result of the company's competitive or proprietary advantages. The investment strategy of the Scheme will be to invest in a basket of stocks after using intensive fundamental analysis, both quantitative and qualitative, monitor the portfolio actively but not so as to engage in excessive trading, and control risk by keeping the portfolio adequately diversified (both in terms of the sectors included in the portfolio as well as with respect to the level of concentration of any particular investment). The primary focus of the Scheme will be on companies that will typically be included in the S&P BSE 200 Index. Valuations will be developed based on the business of the company, the environment in which it operates the skills and resources of its management, the strength of its balance sheet and cash flow relative to its long term goals, and other fundamental sector criteria. Investments will be made in companies whose shares are undervalued when compared to long term valuation expectations. Investments will be sold when the Investment Manager believes the market price of the shares has exceeded its assessment of the long term value of that company, or if there are adverse changes to that company's management, prospects or the markets in which that company operates. This evaluation against market prices will tend to be based on fundamental criteria (dividend yields, price to earnings, price to cash flow, price to book value, and other different measures of share price ratios), relative to a company's peer group, its history and the overall equity markets. Market liquidity will be an important tool to mitigate investment risk. Accordingly, a number of the companies in the portfolio may be included in the S&P BSE-30 Total Return Index that the Investment Manager will use as a benchmark, but this will not be a criterion for including a company in the Scheme's portfolio and the portfolio will generally not include many of the companies in the S&P BSE-30 TRI Index. There may, however, be situations where other factors make an investment attractive enough to cause the Investment Manager to purchase a stock despite a relatively low level of liquidity in that stock. In addition, as noted above, the Scheme may invest in unlisted companies where the Investment Manager believes that a listing is likely within 3 years from the date of the investment. 17

19 Investment Portfolio The Scheme s investment portfolio typically will consist of investments made in shares of Indian companies (defined as a company that is listed on a stock exchange in India or elsewhere and, if not located in India, has over 50% of its assets, revenues, or profits generated from operations in India). The Scheme will invest primarily in equity securities of Indian issuers listed on an Indian stock exchange, or on an approved over-the-counter exchange, including in the form of Depository Receipts. From time to time the Scheme may also invest in the shares of companies that are expected to be listed within three years of the investment. The Board of the AMC will from time to time review and approve the overall investment policy and strategy of the portfolio held by the Scheme. The Scheme will be subject to the investment restrictions prescribed under the SEBI (Mutual Fund) Regulations 1996 and the ELSS. While the majority of the assets will be invested in the equity securities of Indian companies, the Scheme may also invest in debt and money market instruments for the purpose of having liquidity. Generally speaking, the portfolio will tend to include shares of 25 to 40 different companies, and the investment in shares of any one company will tend to be in the range of 2% to 6% of the Scheme s net assets. Particular sectors or industries will not be a significant factor in the decision to add a company to the Scheme's portfolio. INVESTMENT PROCESS AND RECORDING OF INVESTMENT DECISIONS INVESTMENT PROCESS The investment process consists of: 1. Stock selection 2. Portfolio construction The AMC s stock selection approach is basically bottom up and is depicted below: Clients get best of bottom up ideas with a risk control measurement for each sector < 40 stocks Portfolio of stocks with broad exposure to various sectors. Reflecting three broad themes: domestic consumption, exports and infrastructure Regular meeting to review ideas and approve value stocks for the database. 100 stocks Analysts study stocks in their sector in India with global comparisons wherever necessary. The universe is generally S&P BSE 200 with flexibility to include new issues. Research includes visit notes, financial models and investment thesis, supplemented with broker research > 200 stocks 18

20 PORTFOLIO CONSTRUCTION 1. Stock has to be under active and current coverage 2. Every stock in the AMC s database has a pre assigned Buy / Sell Limit. This is an INR price based on underlying fundamental sector criteria. 3. The AMC generally buys a new stock at the pre-determined Buy price (or below) and generally sells an existing stock at the pre-determined Sell price or above. Generally it may add to a stock the Scheme already owns if it is between the pre-determined Buy and Sell price. 4. For the sake of a benchmark the AMC uses the BSE 30 Total Return Index. The AMC is indifferent to whether a stock, the Scheme owns, is in the BSE 30 Total Return Index or not although it recognizes its effect on liquidity. 5. The AMC does not make sector calls. It makes stock calls. 6. With a range of 25 to 40 stocks the Schemes average holding is likely to be 2.5% to 4.0% per stock and the portfolio turnover is expected to be 40% suggesting a 2.5-year average holding period. RISK CONTROL/ RISK MANAGEMENT STRATEGY Risk is an important part of the investment functions. Effective Risk Management is critical to Fund Management for achieving financial goals. Investments made by the Scheme shall be made in accordance with Investment Objective of the Scheme and provisions of SEBI (Mutual Funds) Regulations. Liquidity risk: High impact cost of sectors to ensure the diversification. Generally there is stock wise limit that no investment is made more than 6% of portfolio. The Investments are made only in such stocks which has high trading volume in the market. The Fund has identified following Risk and designed Risk Management Strategies which is the part of the Investment Process to manage such risks. Type of Risks Risk Management Strategies Quality risk: Risk of investing in unsustainable/weak companies Investment universe is selected carefully, based on the quality of business, management capabilities, nature of industry, history of the company, promoter background etc. and also meet regularly companies official to update the information about the companies. Volatility risk: price volatility due to company or portfolio specific factors Event risk: Price risk due to company or sector specific events For hedging the portfolio generally cash is used and when the stocks / markets go up sharply above the comfort level at that time stock has been sold and cash has been retained to invest for further good opportunity. Regular meetings with the companies and internal meetings of Investment team helps to identify and resolve the Event Risk. PROCEDURE AND RECORDING OF INVESTMENT DECISIONS Price risk: Risk for overpaying for a company Concentration risk A number of valuation tools are applied to judge the fair value of the companies and investment is made only if there is good upside in the stock price. For deciding the valuation of the companies various tools is considered such as history of the companies, peers over 5-10 year periods, quantitative analysis. The investments are made in stocks across a number The investment decisions are made by the AMC s Portfolio/ Investment Team. The Portfolio / Investment Team comprises of the Fund Manager, who heads the team, and the Associate Fund Manager as an when appointed by the AMC. The final responsibility for the investment decisions rests with the Portfolio / Investment Team. The Equity Research team meets on a regular basis, with the research analysts presenting research reports on various stocks. The Portfolio / Investment Team reviews the research reports / presentations on the various stocks and keeping in mind the investment objective of the Scheme makes the investment decisions, recording the reasons and justification for each investment decision. The investment decision 19

21 of the scheme will be carried out by the designated Fund Manager. The Chief Executive Officer is not involved in the investment decision making process Record of all investment decisions will be maintained with justifications for the same as required under the regulations. It is the responsibility of the AMC to ensure that the investments are made as per the internal / Regulatory guidelines, Scheme s investment objective and in the best interest of the Unit holders of the Scheme. All investment decisions shall be recorded in terms of SEBI Circular no MFD/CIR/6/73/2000 dated July 27, 2000 or as may be revised by SEBI from time to time PERFORMANCE MEASUREMENT AND REPORTING The Key Employee Investment Committee of the AMC at its regular meeting shall review performance of the Scheme, compliance of the various investment restrictions and compliance with the investment objectives stipulated in the Scheme Information Document and all other applicable SEBI Regulations. The AMC and Trustees shall also review the performance of the scheme at their periodical Board Meetings. The performance would be compared with the performance of the Benchmark and with peer group in the industry. The CEO/Fund Manager will make presentations to the Board of the AMC and the Trustees periodically, indicating the performance of the Scheme. The Fund will adopt S&P BSE 30 TRI as the benchmark for the Scheme. Among other things, the Board of AMC and Trustee will review the performance of the Scheme in comparison to the benchmark. The Trustees reserve the right to change the benchmark for evaluation of performance of the Scheme from time to time in conformity with the Investment objectives and appropriateness of the benchmark subject to SEBI Regulations, and other prevailing guidelines, if any. The CEO/Fund Manager will bring to the notice of the AMC Board, specific factors if any, which are impacting the performance of the Scheme. The Board on consideration of all relevant factors may, if necessary, give appropriate directions to the AMC. Similarly, the performance of the Scheme will be submitted to the Trustees. The CEO/Fund Manager will explain to the Trustees, the details on the Schemes' performance vis-à-vis the benchmark returns. The Trustees and the AMC Board may also review the performance of the schemes in the light of performance of the mutual funds industry as published from time to time by independent research agencies and financial newspapers and journals and may take corrective action in case of unsatisfactory performance. The Scheme performance would also be measured on a risk adjusted basis against its peers. PORTFOLIO TURNOVER The Scheme will adopt a long-term approach to investing, typically holding stocks for a 2 to 3 year period, suggesting an average portfolio turnover of between 33% and 50% subject to market conditions. The goal of the Scheme is not to achieve an absolute return but, instead, will aim to outperform the benchmark BSE-30 Total Return Index. The Portfolio Turnover Ratio for last one year is 6.74% INVESTMENT BY AMC IN THE SCHEME The AMC may invest in their own Schemes at any time during the continuous offer period, provided it is in conformity to the investment objective of the Scheme, the ELSS, SEBI Regulations & circulars issued by SEBI from time to time and to the extent permitted by its Board of Directors. As per the existing SEBI Regulations, the AMC will not charge investment management and advisory fee on the investment made by it in the Scheme. F. FUNDAMENTAL ATTRIBUTES Following are the Fundamental Attributes of the scheme, in terms of Regulation 18 (15A) of the SEBI (Mutual Funds) Regulations: (i) Type of a scheme Open-ended Equity Linked Savings Scheme (ii) Investment Objective a. Main Objective The investment objective of the Scheme is to achieve long-term capital appreciation by investing primarily in shares of companies that will typically be included in the S&P BSE 200 index and are in a position to benefit from the anticipated growth and development of the Indian economy and its markets. b. Investment pattern The tentative Equity/equity related/ Debt/Money Market portfolio break-up with minimum and maximum asset allocation, while retaining the option to alter the asset allocation for a short term period on defensive considerations 20

22 (iii) Terms of Issue (a) Liquidity provisions such as listing, repurchase, redemption. The Scheme is open ended Equity Linked Savings Scheme with Purchase and Redemption of Units on any Business Day. The Scheme being open ended, the Units are not proposed to be listed on any stock exchange. The procedure for repurchase/redemption is as set out in the repurchase/redemption of Units in Section III B of this SID. As per the ELSS, the Units issued under the Quantum Tax Savings Fund (QTSF) can be transferred, assigned or pledged only after a period of 3 (three) years from the date of allotment of the Units. (b) Aggregate fees and expenses charged to the scheme. The aggregate fees and expenses charged to the Scheme are set out in Section IV, Paragraph B which are as permitted by the SEBI Regulations. (c) The Scheme is not a guaranteed or assured return scheme and hence no safety net or guarantee is provided. In accordance with Regulation 18(15A) of the Regulations, the Trustees shall ensure that no change in the fundamental attributes of the Scheme(s) and the Plan(s) / option(s) thereunder or the trust or fee and expenses payable or any other change which would modify the Scheme(s) and the Plan(s) / option(s) thereunder and affect the interests of Unit Holders is carried out unless: A written communication about the proposed change is sent to each Unit Holder and an advertisement is given in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language of the region where the Head Office of the Mutual Fund is situated; and The Unit Holders are given an option for a period of 30 (thirty) days to exit at the prevailing NAV without any Exit Load. Fundamental Attributes will not cover such actions of the Trustees of the Fund or the Board of Directors of the AMC, made in order to conduct the business of the Trust, the Scheme or the AMC, where such business is in the nature of discharging the duties and responsibilities with which they have been charged. Nor will it include changes to the Scheme made in order to comply with changes in Regulations with which the Scheme has been required to comply. G. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? The scheme would be benchmarked to the S&P BSE 30 Total Return Index (TRI). It appropriately represents the returns from the S&P BSE 30 Sensex since it includes the dividend received from the S&P BSE 30 companies. Therefore, the aforesaid benchmark is most suited for comparing performance of the Scheme. The Scheme s portfolio has a bias towards high liquidity stocks. S&P BSE 30 TRI therefore makes a good benchmark as it comprises large cap stocks which are highly liquid. Performance comparisons for the Scheme will be made vis-à-vis the Benchmark. However, the Scheme s performance may not be strictly comparable with the performance of the Benchmark, due to the inherent differences in the construction of the portfolios. The Trustee reserves the right to change benchmark in future for measuring performance of the scheme in conformity with investment objective of the scheme subject to SEBI Regulations. H. WHO MANAGES THE SCHEME? Name of the Fund Manager Age Educational Qualifications Tenure of the Managing the Scheme Experience 21

23 Name of the Fund Manager Age Educational Qualifications Tenure of the Managing the Scheme Experience Atul Kumar 39 B. Com. PGDBM 7.5 years; Since December 10, 2008 Collectively over 13 years of experience in Equity Markets. Since June 2007 till date Quantum Asset Management Company Private Limited as Fund Manager Equity; November 2006 to June 2007 Quantum Asset Management Company Private Limited as Joint Fund Manager Equity; October 2005 to November Quantum Asset Management Company Private Limited as Analyst Equity; January 2005 to August 2005 Sahara Asset Management Company Private Limited as Analyst - Equity.; November 2003 to January 2005 K R Chokshey Shares & Securities Private Limited as Analyst; May 2001 to September 2003 Astute Consulting Private Limited as Consultant; June 1999 to April 2001 S. B. Billimoria & Co. Management Consultant Atul Kumar is also the Fund Manager of Quantum Long Term Equity Fund. I. WHAT ARE THE INVESTMENT RESTRICTIONS? INVESTMENT RESTRICTIONS Pursuant to the Regulations and amendments thereto, the following investment restrictions are presently applicable to the Scheme: 1. The Fund under all its Schemes shall not own more than 10% of any company's paid up capital carrying voting rights. 2. The Scheme shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction 3. The Scheme shall not invest more than 10% of its net assets in equity shares or equity related instruments of any single company. 4. The Scheme shall not invest more than 5% of its net assets in unlisted equity shares or equity related instruments. 5. The Scheme shall not make any investment in: a) any unlisted security of an associate or group company of the Sponsor; b) any security issued by way of private placement by an associate or group company of the Sponsor; or c) the listed securities of group companies of the Sponsor which is in excess of 25% of the net assets of the Scheme. 6. Transfer of investments from one Scheme to another Scheme in the same Mutual Fund is permitted provided: a) such transfers are done at the prevailing market price for quoted instruments on a spot basis (spot basis shall have the same meaning as specified by a Stock Exchange for spot transactions); transfer of unquoted securities will be made as per the policies laid down by the Trustees from time to time, and b) the securities so transferred shall be in conformity with the investment objective of the Scheme to which such transfer has been made. 22

24 7. The Scheme may invest in other Schemes under the same AMC or any other mutual fund without charging any fees, provided the aggregate inter-scheme investment made by all the Schemes under the same management or in schemes under management of any other asset management company shall not exceed 5% of the Net Asset Value of the Fund. 8. The Fund shall get the securities purchased transferred in the name of the Fund on account of the concerned Scheme, wherever investments are intended to be of a long-term nature. 9. The Fund may buy and sell securities on the basis of deliveries and will not make any short sales or engage in carry forward transactions except as and when permitted by the SEBI/RBI in this regard. 10. All the Scheme s investments will be in transferable securities or in money at call or any such facility provided by RBI in lieu of call. 11. No loans for any purpose can be advanced by the Scheme. 12. The Fund shall not borrow except to meet temporary liquidity needs of the Fund for the purpose of Repurchase/ Redemption of Units or payment of interest and/or dividend to the Unitholders, provided that the Fund shall not borrow more than 20% of the net assets of the individual Scheme and the duration of the borrowing shall not exceed a period of 6 months. 13. Pending deployment of funds of a Scheme in securities in terms of investment objectives of the Scheme, the AMC can invest the funds of the Scheme in short-term deposits of scheduled commercial banks. The investments in short term deposits of scheduled commercial banks will be reported to the trustees along with the reasons for the investment which, inter alia, would include comparison with the interest rates offered by other scheduled commercial banks. Further, Quantum AMC will ensure that the reasons for such investments are recorded in the manner prescribed in SEBI Circular MFD/CIR/6/73/2000 dated July 27, 2000 and such investments in short term deposits are made in compliance of SEBI Circular SEBI/IMD/CIRNo. 1/91171/07 dated April 16, 2007 and Circular dated June 23, 2008 or such other guidelines that SEBI may issue from time to time. 14. The Scheme shall not make any investment in a Fund of Fund s Scheme. 15. The Scheme shall not invest more than 10% of its NAV in debt instruments comprising money market instruments and non-money market instruments issued by a single issuer which are rated not below investment grade by a credit rating agency authorised to carry out such activity under the Securities and Exchange Board of India Act, 1992 and this limit may be extended to 12% of the NAV of the Scheme subject to prior approval of the Board of the AMC and the Trustee. Provided that such limit shall not be applicable for investment in Government Securities, treasury bills and collateralized borrowing and lending obligations. Provided further that Investments within such limits can be made in mortgage backed securitized debts which are rated not below investment grade by a credit rating agency registered with SEBI. 16. The Scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and such total investments shall not exceed 25% of the NAV of the Scheme. All such investments shall be subject to the prior approval of the Board of the AMC and the Trustee. Note: Debentures, irrespective of any residual maturity period (above or below 91 days), shall attract the investment restrictions as applicable for debt instruments. Further, it is clarified that the investment limits mentioned in (15) and (16) above are applicable to all debt securities which are issued by public bodies/institutions such as electricity boards, municipal corporations, state transport corporations etc. guaranteed by either central or state government. Government securities issued by central/state government or on its behalf by RBI are exempt from the above referred investment limits. 17. The Scheme will not enter into any transaction, which exposes it to unlimited liabilities or results in the encumbering of its assets in any way so as to expose them to unlimited liability. These investment limitations/parameters as expressed/linked to the net asset/net asset value/capital, shall in the ordinary course, apply as at the date of the most recent transaction or commitment to invest. Changes do not have to be effected merely because of appreciation or depreciation in value or by 23

25 reason of the receipt of any rights, bonuses or benefits in the nature of capital or of any scheme of arrangement or for amalgamation, reconstruction or exchange, or at any repayment or Redemption or other reason outside the control of the Fund, in case any such limits would thereby be breached due to such an event. If these limits are exceeded for reasons beyond its control, AMC shall adopt as a priority objective the remedying of that situation, taking due account of the interests of the Unitholders. The Scheme will comply with SEBI regulations and any other Regulations applicable to the investments of Mutual Funds from time to time. The Trustees may alter the above restrictions from time to time to the extent that changes in the Regulations may allow and/or as deemed fit in the general interest of the Unitholders. All the above investment restrictions shall be applicable at the time of making the investment. The AMC may alter these above stated restrictions from time to time to the extent the SEBI Regulations or ELSS change, so as to permit the Scheme(s) to make its investments in the full spectrum of permitted investments for mutual funds to achieve its respective investment objective. The Trustee may from time to time alter these restrictions in conformity with the SEBI Regulations and ELSS. All investment restrictions shall be applicable at the time of making investment. J. HOW HAS THE SCHEME PERFORMED? A) Compounded Annualized Returns as on April 29, 2016 (Growth Option) Compounded Annualized Returns (Growth Option) Scheme Returns % Benchmark Returns % (S&P BSE 30 TRI) 1 Year Year Year Since Inception Past performance may or may not be sustained in future. Date of Inception December 23,

26 Returns B) Absolute Returns for last 5 Financial Years (Growth Option) % Absolute Return QTSF Benchmark % 80.00% 60.00% 40.00% 20.00% 8.98% 10.13% 23.41% 20.73% 28.48% 26.81% 0.00% % % % % -1.73% -9.16% -0.24% -7.91% % Financial Year Past performance may or may not be sustained in future K. SCHEME PORTFOLIO HOLDINGS AS ON APRIL 29, 2016 (i) Top 10 Holdings by Issuer: Issuer % to NAV Infosys Limited 7.71% Bajaj Auto Limited 7.66% Hero MotoCorp Limited 6.54% Housing Development Finance Corporation Limited 5.96% Tata Consultancy Services Limited 5.91% The Indian Hotels Company Limited 4.35% Petronet LNG Limited 4.24% Tata Motors Limited 4.09% NTPC Limited 4.06% Tata Chemicals Limited 3.95% Grand Total (ii) Fund Allocation Toward Various Sectors: Sector Allocation % to NAV Energy 23.59% Automobile 22.77% IT 16.45% Financial Services 14.67% Services 4.35% 25

27 Chemicals 3.95% Metals 3.33% Construction 3.16% Pharma 2.84% Telecom 2.50% Others 2.39% Grand Total % Note: Others include CBLO and cash & cash equivalents (iii) To obtain scheme s latest monthly portfolio please click the following link L. AGGREGATE INVESTMENT IN THE SCHEME UNDER THE FOLLOWING CATEGORIES AS ON APRIL 29, 2016: AMC Board of Directors (`. Scheme s Fund Manager (`. Other Key Managerial In Lakhs) In Lakhs) Personnel (`. In Lakhs) 2.72 Nil

28 III. UNITS AND OFFER This section provides details you need to know for investing in the scheme. A. NEW FUND OFFER (NFO) This section does not apply to the Scheme covered in this SID, as the ongoing offer of the Scheme has commenced and the Units are available for continuous subscription and redemption. B. ONGOING OFFER DETAILS Ongoing Offer Period This is the date from which the scheme will reopen for subscriptions / redemptions after the closure of the NFO period. Ongoing price for subscription (purchase)/switch-in (from other schemes/plans of the mutual fund) by investors. This is the price you need to pay for purchase/switch-in. Ongoing price for redemption (sale) /switch outs (to other schemes/plans of the Mutual Fund) by investors. This is the price you will receive for redemptions/switch outs. Cut off timing for subscriptions/ redemptions/ switches This is the time before which your application (complete in all respects) should reach the official points of acceptance. The continuous offer for the scheme commenced from December 31, At the applicable NAV. At the applicable NAV. The cut-off times for determining Applicable NAV s for subscription, redemptions and switches to be made at the Investor Service Centres/ Official Points of Acceptance from time to time are as per the details given below: SUBSCRIPTION/PURCHASE INCLUDING SWITCH-INS:- 1. Purchases for an amount of `2 lakh and above: a. In respect of valid application received up to 3.00 p.m. on a Business Day with RTGS / NEFT / Fund Transfer / Local Cheque / Demand Draft payable at par at the place where it is received /Cash Card/ Debit Card/ IMPS/ One Time Mandate NACH and funds for the entire amount of subscription/ purchase as per the application are credited to the bank account of the Scheme and are available for utilization before the cut-off time ( 3.00 p.m.), the closing NAV of the day on which the funds are available for utilisation shall be applicable; b. In respect of valid application received after 3.00 p.m. on a Business Day with RTGS / NEFT / Fund Transfer / Local Cheque / Demand Draft payable at par at the place where it is received /Cash Card/ Debit Card/ IMPS/ One Time Mandate NACH and funds for the entire amount of subscription / purchase as per the application are credited to the bank account of the Scheme and available for utilization before the cut-off time (3.00 p.m.) of the next Business Day, the closing NAV of the next Business Day shall be applicable; c. However, irrespective of the time of receipt of application, where the funds are not available for utilisation on the day of the application, the closing NAV of the Business Day on which the funds are available for 27

29 utilisation before the cut-off time (3:00 p.m.) shall be applicable, provided the application is received prior to availability of the funds. 2. Purchases/switch-in for amount of less than `2 lakh: a. Where the application is received up to 3.00 pm on a Business Day with RTGS / NEFT / Fund Transfer / Local Cheque / Demand Draft payable at par at the place where it is received /Cash Card/ Debit Card/ IMPS / One Time Mandate NACH closing NAV of the day of receipt of application shall be applicable; b. Where the application is received after 3.00 pm on a Business Day with RTGS / NEFT / Fund Transfer / Local Cheque / Demand Draft payable at par at the place where it is received /Cash Card/ Debit Card/ IMPS/ One Time Mandate NACH - the closing NAV of the next Business Day shall be applicable; and c. Where the application is received with an outstation cheque or demand draft which is not payable on par at the place where it is received the closing NAV of day on which the funds for the cheque or demand draft is credited to the account of Scheme shall be applicable. Applicable NAV in case of Multiple applications: In case of multiple applications received on the same day under the Scheme from the same investor (identified basis the First Holder s PAN and Guardian s PAN in case of investor being Minor) with investment amount aggregating to `2 lakh and above, such multiple applications will be considered as a single application and applicable NAV will be based on funds available for utilization. All transactions as per conditions given below shall be aggregated and closing NAV of the day on which funds are available for utilization shall be applied where the aggregated amount of the investment is ` 2.00 lakh and above. a. All transactions received on the same day (as per Time stamp rule). b. Transactions to include purchases, additional purchases, excluding Switches, SIP/STP. c. Aggregations to be done on the basis of investor/s PAN. In case of joint holding, transactions with similar holding structures to be aggregated, similar to the principle applied for compilation of Consolidated Account Statement (CAS). d. All transactions to be aggregated where investor holding pattern is same as stated above, irrespective of whether the amount of the individual transaction is above or below ` 2 lakh. e. The transactions will be clubbed at option level. f. Transactions in the name of minor received through guardian should not be aggregated with the transaction in the name of same guardian. REDEMPTIONS INCLUDING SWITCH OUTS: 1. In respect of valid applications received up to 3 p.m. on a Business Day - the closing NAV of the day of receipt of application shall be applicable. In respect of valid applications received after 3 p.m. on a Business Day - the closing NAV of the next Business Day shall be applicable. 28

30 Dividend Policy Who can invest This is an indicative list and you are requested to consult your financial advisor to ascertain whether the scheme is suitable to your risk profile. The Trustee proposes to follow the following dividend distribution policy: In terms of SEBI Circular No. 1/64057/06 dated April 4, 2006, the Trustees shall fix the quantum of dividend and the record date. The AMC shall, within one calendar day of the decision by the Trustee, issue notice to the public, communicating the decision, including the record date. The record date shall be 5 calendar days after the issue of notice and issued in accordance with the terms of the Circular. Declaration of dividend is subject to the availability of distributable surplus. It must be distinctly understood that the actual declaration of dividends under the Scheme and the frequency thereof will, inter-alia, depend upon the distributable surplus of the Scheme. There is no assurance or guarantee to Unitholders as to the rate of dividend distribution nor will that dividend be regularly paid. The dividend that may be paid out of the net surplus of the Scheme will be paid only to those Unitholders whose names appear in the register of Unitholders on the notified record date. Unitholders are entitled to receive dividend within 30 days of the date of declaration of the dividend. However, the Mutual Fund will endeavour to make dividend payments sooner to Unitholders. On distribution of dividends, the NAV will stand reduced by the amount of dividend distributed and statutory levy, if any, at the close of business hours on record date. WHO CAN INVEST? The following persons are eligible and may apply for subscription to the Units of the Scheme (subject, wherever relevant, to purchase of units of mutual funds being permitted under relevant statutory regulations and their respective constitutions): 1. Resident adult individuals either singly or jointly (not exceeding three);or on an Anyone or Survivor basis; 2. A Hindu Undivided Family (HUF) through its Karta; 3. An Association of Persons or a body of individuals (as mentioned under the term Assessee in the ELSS) As the Scheme is floated as an Equity Linked Savings Scheme as per the ELSS, the following categories of investors will not qualify for the tax benefits under Section 80C of the Income Tax Act, 1961 (but are entitled to subscribe to Units): 1. Public Sector Undertakings, Association of Persons or a body of individuals whether incorporated or not; 2. Minors through parent / legal guardian There shall not be joint holding with minor investments;; 3. Partnership Firms & Limited Liability Partnerships (LLP); 4. Companies, Bodies Corporate and societies registered under the Societies Registration Act,1860 ; Co-Operative Societies registered under the Co- Operative Societies Act, 1912, One Person Company.; 5. Banks & Financial Institutions; 6. Mutual Funds registered with SEBI / Alternative Investment Funds registered with SEBI; 7. Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals as required) and Private trusts authorised to invest in mutual fund schemes under their trust deeds; 29

31 8. Non-Resident Indians (NRIs/) Persons of Indian origin residing abroad (PIO) on repatriation basis or on non-repatriation basis; 9. Foreign Institutional Investors (FIIs) registered with SEBI on repatriation basis; 10. Foreign Portfolio Investors (FPI) registered with SEBI on repatriation basis; 11. Army, Air Force, Navy and other para-military units and bodies created by such institutions; 12. Scientific and Industrial Researchues, Multilateral Funding Agencies/Bodies Corporate incorporated outside India with the permission of Government of India/Reserve Bank of India; 13. Other schemes of Quantum Mutual Fund subject to the conditions and limits prescribed by SEBI Regulations; 14. Trustee, AMC or Sponsor or their associates may subscribe to Units under the Scheme; 15. Such other individuals / institutions / body corporate etc., as may be decided by the AMC/Mutual Fund from time to time, so long as wherever applicable they are in conformity with SEBI Regulations. WHO CANNOT INVEST? It should be noted that the following persons cannot invest in the Scheme(s): 1. Any person who is a Foreign national. 2. United States Person (US Person) under regulations promulgated under the US Securites Act of Resident of Canada 4. NRI residing in any FATF (Financial Action Task Force) declared noncompliant country/territory. 5. Qualified Foreign Investors (QFI) The Fund reserves the right to include/exclude new/existing categories of Investors to invest in the Scheme from time to time, subject to SEBI Regulations and other prevailing statutory regulations, if any. Note: 1. In case of application under a Power of Attorney or by a limited company or a corporate body or an eligible institution or a registered society or a trust fund, the original Power of Attorney or a certified true copy duly notarised or the relevant resolution or authority to make the application as the case may be, or duly notarised copy thereof, along with a certified copy of the Memorandum and Articles of Association and/or bye -laws and / or trust deed and / or partnership deed and Certificate of Registration should be submitted. The officials should sign the application under their official designation. A list of specimen signatures of the authorised officials, duly certified / attested should also be attached to the Application Form. In case of a Trust / Fund it shall submit a resolution from the Trustee(s) authorizing such purchases and Repurchase / Redemptions. 30

32 Applications failing to fulfill the above-stipulated conditions are liable to be rejected. 2. Returned cheques are not liable to be presented again for collection, and the accompanying application forms are liable to be rejected. In case the returned cheques are presented again, the necessary charges, if any, are liable to be debited to the investor. 3. RBI has vide Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, granted a general permission to NRIs / Persons of Indian Origin residing abroad (PIOs) and FIIs and Foreign Portfolio Investors (FPI) for purchasing/ Repurchasing /Redeeming Units of the mutual funds subject to conditions stipulated therein. All cheques and bank draft accompanying the application form should contain the application form number on its reverse side. It is mandatory for every applicant to provide the bank, branch, address, account type and number as per SEBI requirements and any Application Form without these details will be treated as incomplete. Such incomplete application will be rejected. Where can the applications for purchase/redemption/ switches be submitted? Applications complete in all respects, can be submitted at: (a) Karvy Computershare Private Limited, Unit: Quantum Mutual Fund, Karvy Selenium Tower B, Plot number 31 & 32, Financial District, Nanakramguda Serilingampally Mandal, Hyderabad or its Investor Services Center/ Collection Center details mentioned on back cover page of this SID. (b) Investors can purchase / redeem units of the Scheme through an online website of Karvy Computershare Private Limited by opening an account on Karvy Website. (c) Investors can purchase / redeem units of the Scheme through - KTRACK a mobile application of Karvy Computershare Private Limited by opening an account with KTRACK. (d) Quantum Asset Management Company Private Limited 505, 5th Floor, Regent Chambers, Nariman Point, Mumbai or its collection center details mentioned on back cover page of SID; (e) Investors can purchase / redeem units of the Scheme through Electronic Mode - Website, Electronic Mail ( ), with Attachment, Fax, Fax Through Electronic Mail (Fax ), Short Messaging Services (SMS), WhatsAPP Messenger, HIKE Messanger and Quick Transact and other Electronic Mode as may be permitted and notify by the AMC from time to time. Please refer SAI for the details terms and conditions for transactions through Electronic Mode. (f) Investors can invest in the Scheme by making switch from other schemes (other than exchange traded fund) of Quantum Mutual Fund. (g) In order to facilitate transactions in mutual fund units BSE has introduce BSE STAR MF Plat form and NSE has introduce Mutual Fund Service System (MFSS). Investors can purchase/redeem units of the Scheme by placing an order for purchase/redemption with the members (Stock Broker) / clearing members of stock exchanges /Distributors. These members (Stock Brokers) / clearing members / Distributors would be availing the platform / mechanism provided by the stock exchanges for placing an order for purchase / redemption of units of the Scheme 31

33 through Stock Exchange Infrastructure. Please refer SAI for detailed process on subscription / redemption of units of the scheme through stock exchange mechanism. (h) Investors can drop their application(s) in the Drop Boxes having the logo of QMF available at various locations such as Housing Societies / Railway Stations / Airports / ATM's of the Bank as disclosed on the website / from time to time. Please refer SAI for detailed terms and conditions for the Drop Box Facility. (i) Investors can get their application(s) collected through "Pick-up Facility" as may be arranged by the AMC through various Pick-up service provider(s). Under this Pick-up Facility, Investors can call the Toll Free helpline of the AMC for arranging pick-up of the subscription application at various locations which is disclosed on the website Please refer SAI for detailed terms and conditions for the Pick-up Facility. (j) Investors can purchase / redeem units of the Scheme through Mutual Fund Utility India Private Limited (MFUI) platform either electronically on as and when such a facility is made available by MFUI or physically through the authorized Points of Service ( POS ) of MFUI with effect from the respective dates as published on MFUI website against the POS locations. Please refer SAI for detailed terms and conditions for transactions through MFUI platform. How to Apply Please refer to the SAI and Application Form. Listing Minimum Application Amount for purchase / redemption/switches Minimum balance to be maintained and consequences of non maintenance. It is not proposed to list the units issued under this scheme. However, the Mutual Fund may at its sole discretion list the Units on one or more stock exchanges at a later date. Initial purchase: ` 500/- and in multiples of ` 500/- thereafter. Additional Purchase: ` 500/- and in multiples of ` 500/- thereafter. Redemption / Switches: ` 500 / 50 units. Investors may note that the AMC at its sole discretion may close a Unitholder's account after giving notice of 30 days, if at the time of any part Repurchase, the value of balance Units (represented by the Units in the Unitholder's account if such Repurchase/Redemption/Switch were to take place, valued at the applicable Repurchase/Redemption Price), falls below the minimum amount of ` 500/-. The AMC may process the continuous request of Systematic Transfer Plan (STP) / Systematic Withdrawal Plan (SWP) considering such request as redemption request even if the minimum amount falls below `.500/ - and may result in closure the investor account which the AMC may do at its sole discretion. The AMC may accept the request of the investor for Switch / Transfer of all units from the Scheme even if the minimum amount fall below `.500/- to the Transferee Scheme even if the amount of all units being switched / transferred in the Transferee Scheme will be less than the minimum amount which is required to be invested as per the respective Scheme Information Document of the Scheme(s) of the Transferee Scheme and close the investor account in the Scheme at its sole discretion. Option to hold units in Dematerialized Mode The unit holders are given an option to hold the units in physical mode or in dematerialized mode. 32

34 The Investor intending to hold the units in dematerialized mode will be required to have a beneficiary account with a Depository Participant and will be required to mention the DP s Name, DP ID No. and Beneficiary Account No. with the DP in the application form at the time of subscription / additional purchase of the units of the Scheme. It may be noted that in case of option to hold units in dematerialized mode under Systematic Investment Plan (SIP), the units will be credited to Investor s demat account on weekly basis on every Monday subject to realization of funds in the last week. For e.g. Units will be credited to investor s demat account on following Monday for realization status of funds received in the last week from Monday to Friday. It may be noted that the facilities viz. Switch in and out/ Systematic Withdrawal Plan (SWP) / Systematic Transfer Plan (STP) are currently not available in the dematerialized mode. Plans / Options offered under the Scheme The Scheme offers two Options: - (a) Growth Option and (b) Dividend Option. (a) Growth Option Dividends will not be declared under this Option. The income attributable to Units under this Option will continue to remain invested and will be reflected in the Net Asset Value of Units under this Option. (b) Dividend Option Under this Option, it is proposed to declare dividends subject to availability of distributable profits, as computed in accordance with SEBI Regulations. In terms of SEBI Circular No. 1/64057/06 dated April 4, 2006, the Trustees shall fix the quantum of dividend and the record date (which is the date that will be considered for the purpose of determining the eligibility of investors) at their meeting. Dividends, if declared, will be paid (subject to deduction of tax at source, if any) to those Unitholders whose names appear in the Register of Unitholders on the notified record date. The AMC shall, within one calendar day of the decision by the Trustee, issue notice to the public, communicating the decision, including the record date. In case of Units held in dematerialized mode, the Depositories (NSDL/ CDSL) will give the list of demat account holders and the number of Units held by them in electronic form on the Record date to the Registrars and Transfer Agent of the Mutual Fund who shall be eligible to receive the dividends. The record date shall be 5 calendar days after the issue of notice. Further the Trustee at its sole discretion may also declare interim dividend. However, it must be distinctly understood that the actual declaration of dividend and the frequency thereof will inter-alia, depend on the availability of distributable profits as computed in accordance with SEBI Regulations. The decision of the Trustee in this regard shall be final. There is no assurance or guarantee to Unitholders as to the rate of dividend distribution nor that dividends will be paid regularly. In order to be a Unitholder, an Investor has to be allotted Units against receipt of clear funds by the Scheme. On distribution of dividends, the NAV will stand reduced by the amount of dividend distributed and statutory levy, if any, at the close of business hours on record date. The Trustee / AMC reserves the right to change the record date from time to time. Note: Investors should indicate the Option for which the subscriptions is made by indicating the choice in the appropriate box provided for this purpose in the 33

35 Application Form. In case of valid applications received, without indicating any choice of Option, it will be considered as opted for Growth Option and processed accordingly. Presently, the Scheme does not offer any Plan. Special Facilities Available However, the Trustee reserve the right to introduce / modify investment Plans / Options under the Scheme at a future date in accordance with SEBI (MF) Regulations. 1. Systematic Investment Plan (SIP) This facility enables investors to save and invest periodically over a long period of time. Frequencies Available Under SIP Minimum Amount Minimum No. of Installments/ Instructions Frequency of dates Daily Weekly Fortnightly Monthly Quarterly ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter Daily - All Business Days ` 500/- and in the multiples of `500/- thereafter Weekly 7,15,21,28 Fortnightly 5&21 OR 7&25 Monthly / Quarterly 5,7,15,21,25,28 1. An investor needs to provide the first cheque / Demand Draft with the SIP application form. The date of the first cheque shall be the same as the date of the application. The remaining payment instructions / cheque can be on any dates of the month as specified in the SIP application form. 2. The applicable NAV in such first sale shall be the NAV based on the date and time of receipt of application along with the cheque 3. SIP shall be started subject to realization of the first installment. 4. There is no upper limit for individual installments / aggregate investment made under Daily/Weekly/fortnightly/Monthly/Quarterly SIP. 5. The minimum amount for every installment shall be ` 500/- and in multiple of ` 500 thereafter. 6. The request for enrollment / processing of SIP will only be on a Business Day at the applicable NAV. In case during the term of SIP processing date falls on a non-business Day, then such request will be processed on the next following Business Day at that day s applicable NAV; 7. The request for enrollment of SIP in the prescribed form should be 34

36 received at any official point of acceptance / Investor service center at least 30 Business Days in advance before the execution / commencement date. 8. The request for discontinuation of SIP in the prescribed form should be received at any official point of acceptance / Investor Service Center at least 15 Business Days in advance before the execution / commencement date. 9. The units will be allotted to the investor at applicable NAV of the respective Business Days on which the investment are sought to be made as per the applicable cut-off timing. 10. The AMC may also based on cheque authorization received from the Unitholder approach the Unitholder s bank for setting up standing instruction for remittance of the stated SIP amount at stated intervals in favor of the Fund. In case the bank fails to take cognizance of the cheque authorisation, the Unitholder may be requested to re-send postdated cheques. In case any particular date of the postdated cheque falls on a holiday the immediate next Business Day will be considered for this purpose. The Unitholder s account will be credited with the number of units at the applicable Sale Price. Unitholder may also leave a standing instruction with his/her bank to periodically remit a fixed sum from his/her account into the Scheme. A Unitholder should note that the market value of the Scheme s units is subject to fluctuation. Before going in for the Systematic Investment Plan, the Unitholder should keep in mind that the SIP does not assure a profit or protect against a loss. 11. In case of investments under SIP, if 2 or more consecutive payment instructions / Postdated Cheques provided by the investor / unitholder are dishonored for either insufficiency of funds or as a result of a stop payment instruction issued by the investor/unitholder or any other reason as intimated by the Bank, the AMC reserves the right to discontinue the SIP facility provided to the investor/unitholder. 12. An investor can also invest in the Scheme through SIP Facility through the Stock Exchange mechanism as such SIP frequency available under the Stock Exchange mechanism from time to time. 2. Systematic Withdrawal Plan Unitholders can avail this facility only after completion of 3 years from the date of allotment of units under the ELSS. This facility enables an investor to withdraw sums from their Unit accounts in the Scheme at periodic intervals through a one-time request. The withdrawals can be made as follows: Frequencies Available Under SWP Minimum Amount Minimum No. of Installments / Instructions Weekly Fortnightly Monthly Quarterly ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter 35

37 Frequency of dates Weekly 7,15,21,28 Fortnightly 5&21 OR 7&25 Minimum Balance Start SWP to Monthly / Quarterly 5,7,15,21,25,28 ` 5000/- 1) The withdrawals will commence from the start date mentioned by the investor in the SWP Application Form. The Units will be redeemed at the Applicable NAV of the respective dates on which such withdrawals are sought. 2) The request for enrollment / processing of SWP will only be on a Business Day at the applicable NAV. In case during the term of SWP processing date falls on a non-business day, then such request will be processed on the next following business day at that day s applicable NAV 3) The request for enrollment of SWP in the prescribed form should be received at any official point of acceptance / Investor service center at least 10 business days in advance before the execution / commencement date. 4) The request for discontinuation of SWP in the prescribed form should be received at any official point of acceptance / Investor Service Center at least 10 business days in advance before the execution / commencement date. 3. Systematic Transfer Plan Unit holders can avail this facility only after completion of 3 years from the date of allotment of units under the ELSS. This facility enables an investor to transfer fixed amounts from their accounts in the Scheme to the other schemes (other than exchange traded fund) launched by the Mutual Fund from time to time. Frequencies Available Under STP Minimum Amount Minimum No. of Installments / Instructions Frequency of dates Daily Weekly Fortnightly Monthly Quarterly ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter ` 500/- and in multiples of ` 500/- thereafter Daily - All Business Days Weekly 7,15,21,28 ` 500/- and in multiples of ` 500/- thereafter Fortnightly 5&21 OR 7&25 Monthly / Quarterly 5,7,15,21,25,28 36

38 Minimum Balance start STP to ` 5000/- 1) The STP will commence from the date mentioned by the investor in the STP Application Form. 2) The request for enrollment / processing of STP will only be on a Business Day at the applicable NAV. In case during the term of STP processing date falls on a non-business day, then such request will be processed on the next following Business Day at that day s applicable NAV. 3) The request for enrollment of STP in the prescribed form should be received at any official point of acceptance / Investor service center at least 10 business days in advance before the execution / commencement date. 4) The request for discontinuation of STP in the prescribed form should be received at any official point of acceptance / Investor Service Center at least 10 business days in advance before the execution / commencement date. 5) A request for STP will be treated as a request for Redemption from/subscription into the respective Option(s)/Plan(s) of the Scheme(s) as opted by the Investor, at the applicable NAV. 6) The transfers under this facility can be made on a daily/weekly/fortnightly/monthly/quarterly basis. Units transferred into the Scheme will be locked in for a period of 3 (three) years from the date of allotment of Units. SWITCHING OPTION Unitholders can avail this Option only after completion of 3 years from the date of allotment of units under the ELSS. Unitholders under the scheme have the option to switch part or all of their investments from one plan / options of the scheme to another plan / option of the schemes of Quantum Mutual Fund subject to terms and conditions of the respective scheme or within the scheme from one plan / option to other plan / option. The switch will be affected by way of redemption of units from one option of a scheme and a reinvestment of the redemption proceeds in the other option of such scheme and accordingly, to be effective, the switch must comply with the redemption rules and issue rules of the Scheme. Transmission of Units and Nomination Facility Account Statement As per the ELSS, in the event of the death of the 'Assessee', the nominee or legal heir as the case may be shall be able to withdraw the investment only after the completion of1 (one) year from the date of allotment of the Units to the 'Assessee'. Accordingly, transfer of Units (allotted to 'Assessee' as defined under the ELSS) to nominees as mentioned above will be carried out only after the completion of 1 (one) year from the date of its allotment. The restriction of 3 (three) year shall apply to units allotted to investors other than the deceased 'Assesses' referred to above. Consolidated Account Statement (CAS): 1. On acceptance of the application for subscription, an allotment confirmation specifying the number of units allotted by way of and/or SMS (if the mobile number is not registered under Do Not Call Registry) within 5 37

39 Business Days from the date of receipt of transaction request. The allotment confirmation will be sent to the applicant s registered address and/or mobile number. Investors / unit holders are therefore requested to provide their id and mobile number in the application form at the time of subscription. 2. Thereafter, a CAS for each calendar month shall be sent by mail / on or before 10 th of the succeeding month to the unit holders by the Depository for unit holders having Mutual Fund investments and holding demat account and by the AMC / Registrar for unit holders having Mutual Fund investments but do not have demat account for each calendar month in whose folios transactions have taken place during the month. The CAS shall contain details relating to all the transactions carried out by the investor / unit holder across all schemes of all mutual funds or transactions in demat account during the month and holding at the end of the month. Such transactions in mutual funds shall include purchase, redemption, switch, dividend payout, dividend reinvestment, systematic investment plan, systematic withdrawal plan, systematic transfer plan transactions. 3. For the purpose of sending the CAS, common investors / unitholders with the same holding pattern of the folio across mutual funds / depository shall be identified by their Permanent Account Number (PAN). In case of multiple holdings it shall be identified on the basis of PAN of first holder and pattern of holding. 4. The CAS shall not be received by the Unit holders for the folio(s) not updated with PAN details. The unit holders are therefore requested to ensure that the folio(s) are updated with their PAN. 5. In case of a specific request received from the Investors / unit holders, the AMC/Fund will provide the account statement to the investors / unit holders within 5 Business Days from the date of receipt of such request. 6. In the event of the folio is having more than one registered / joint holders, the CAS shall be sent to the first named unit holder and not to other registered / joint holders. 7. The investor may request for a physical Account Statement by writing / calling to the AMC / Investor Service Center / Registrar & Transfer Agent. The AMC and Mutual Fund shall provide the physical Account Statement to the investor within 5 Business Days from the receipt of such request without any charges. DORMANT ACCOUNT STATEMENT The CAS detailing holding across all schemes of all mutual funds at the end of every six months (i.e. September/ March), shall be sent by mail/ on or before 10 th day of succeeding month by the AMC / Registrar to all such investors / unit holders which do not have demat account and in whose folio no transactions has taken place during the period. The CAS detailing holding across all schemes of all mutual funds at the end of every six months (i.e. September / March), shall be sent by mail/ on or before 10 th day of succeeding month by the Depositories to all such investors / unit holders which has demat account with nil balance and no transaction in securities or in folio has taken place during the period. Dividend The dividend warrants shall be dispatched to the unitholders within 30 days of the date of declaration of the dividend. 38

40 Redemption The redemption or repurchase proceeds shall be dispatched / credited to the registered bank account of the unitholders to the unitholders within 10 working days from the date of redemption or repurchase. If the redemption request amount exceeds the balance lying to the credit of the Unit Holder s said account, then the fund shall redeem the entire amount lying to the credit of the Unit Holder s account in that Scheme/Plan/option. The minimum amount in rupees for Redemption shall be ` 500/- (Rupees Five Hundred only) and multiple of ` 500/- thereafter / 50 units or account balance whichever is less. Units can be redeemed (sold back to the Mutual Fund) at the Redemption Price during the Ongoing Offer Period subject to a lock in period of 3 (three) years as per the ELSS. Redemption under dematerialized mode: The investor who holds units in the demat mode is required to place an order for redemption directly with the Depository Participants. The Investor should provide request for redemption to their Depository Participants along with Depository Instruction Slip and such other documents as may be specified by the Depository Participants. The investor can also redeem units holds in demat mode through Stock Exchange Infrastructure The redemption requests submitted to the AMC / Registrar directly are liable to be rejected. If the investor wish to redeem the units hold in demat mode with the AMC in such case the investor is required to convert such units in the physical mode by submitting request for Rematerilazation to the Depository Participants and after conversion of such units into the physical mode to the AMC for redemption of such units. The Trustee may mandatory redeem units of any unitholders in the event that it is found that the unitholders has submitted information either in the application or otherwise that is false, misleading or incomplete or units are held by a unitholders in breach of the regulation. The AMC may in the general interest of the unitholders of the Scheme, keeping in view of the unforeseen circumstances / unsure conditions, limit the total number of units which may be repurchased / redeemed on any Business Day up to 5% of the total number of units of the Scheme. For details, please refer to paragraph on Right to Redemption in the SAI. Units can be redeemed (sold back to the Mutual Fund) at the Redemption Price during the Ongoing Offer Period. Delay in payment of redemption / repurchase proceeds In case of delay in payment of redemption proceeds. The Asset Management Company shall be liable to pay interest to the unitholders at such rate as may be specified by SEBI for the period of such delay 15% per annum) However, the AMC will not be liable to pay any interest or compensation or any amount otherwise, in case the AMC / Trustee is required to obtain details from the investor / unitholders for verification of identity or such other details relating to subscription of units under any applicable law or as may be requested by a regulatory body or any government authority which may result in delay in processing the application. 39

41 The policy regarding reissue of repurchased units, including the maximum extent, the manner of reissue, the entity (the scheme or the AMC) involved in the same. Restrictions, if any, on the right to freely retain or dispose of units being offered. Lien on Units for Loans Presently, AMC does not intend to re-issue the units once redeemed. The number of units held by the unit holder in demat mode or in physical mode will stand reduced by the numbers of units redeemed. As per the ELSS, the Units issued under the Scheme can be assigned or pledged only after the lock-in period of 3 (three) years has elapsed from their date of allotment. In conformity with the guidelines and notifications issued by SEBI / Government of India / any other Regulatory Agencies from time to time, as applicable, Units under the Scheme may be offered as security by way of a lien / charge in favour of scheduled banks, financial institutions, non-banking finance companies, or any other body. The Registrar will note and record the lien against such Units. A standard form for this purpose is available on request. The Unit Holder will not be able to redeem / switch Units under lien until the lien holder provides written authorisation to the AMC/Mutual Fund/Registrar that the lien is discharged. As long as Units are under lien, the lien holder will have complete authority to exercise the lien, thereby redeeming such Units and receiving payment proceeds. In such instance, the Unit Holder will be informed by the Registrar through an account statement. Dividends declared on units under lien will be paid / reinvested to the credit of the Unit Holder and not the lien holder unless specified otherwise in the lien letter. The Units of the Scheme (except the units held in demateralised mode since they are governed under SEBI (Depository and Participants) Regulations, 1996) are currently not transferable. The Trustee reserves the right to make the Units transferable at a later date subject to the Regulation. Any addition / deletion in respect of joint holdings other than the first holder and/ or addition of names to a single holding will be permitted under any folio of the scheme and this will not be deemed to be in the nature of transfer. Any addition / deletion of names shall not be allowed where the units are subject to lien / pledged / charge. However, the deletion of names in case of death of the first named unit holder (in respect of joint holdings) will be treated as transmission of units. The Units issued under the Scheme can be transferred, assigned or pledged in conformity with the guidelines and notifications issued by SEBI / government of India / any other regulatory body from time to time, Units under the Scheme may be offered as security by way of a lien / charge in favour of scheduled banks, financial institutions, non-banking finance companies (NBFCs) or any other body. The Registrar and Transfer Agent will note and record the lien against such Units. A standard request letter for this purpose is available on request with the Registrar and Transfer Agent or the AMC. The Unit Holder will not be able to redeem / switch Units under lien until the lien holder provides written authorization to the Mutual Fund that the lien / charge may be vacated. As long as Units are under lien, the lien holder will have complete authority to exercise the lien, thereby redeeming such Units and receiving payment proceeds. In such instance, the Unit Holder will be informed by the Registrar and Transfer Agent through an account statement. In no case will the Units transferred from the Unit Holder to the lien holder. Dividends declared on Units under lien will be paid / re-invested to the credit of the Unit Holder and not the lien holder unless specified otherwise in the lien letter. 40

42 C. PERIODIC DISCLOSURES Net Asset Value This is the value per unit of the scheme on a particular day. You can ascertain the value of your investments by multiplying the NAV with your unit balance. NAV shall be calculated, declared and announced on all Business Days and uploaded on the AMFI website ( by 9.00 p.m. the same will also be uploaded on the Fund s website / on every Business Day and will also be published in two newspapers. Investors may obtain NAV information on any business day by calling the office of the AMC or any other Investor Service Centres. In case of any delay the reasons for such delay would be explained to AMFI in writing. If the NAVs are not available before commencement of Business Hours on the following day due to any reason, the Fund shall issue a press release providing reasons and explaining when the Fund would be able to publish the NAVs. Portfolio disclosure: This is a list of securities where the corpus of the scheme is currently invested. The market value of these investments is also stated in portfolio disclosures. The Fund shall before the expiry of 1 month from the close of each half year, that is as on 31 March and 30 September, publish a complete statement of the scheme portfolio by way of an advertisement in one English daily newspaper circulating in the whole of India and in a newspaper published in the language of the region where the Head Office of the Fund is situated or send to the Unitholders a complete statement of Schemes portfolios and shall also update the same on the AMC's website at / www. QuantumMF.com and on AMFI's website at in the prescribed format before the expiry of one month from the close of each half year. Further, the monthly portfolio of the scheme (along with ISIN) shall also be made available on the website of The Fund/ AMC / www. QuantumMF.com on or before tenth day of the succeeding month in user - friendly and downloadable format. Half Yearly Results Annual Report The Fund shall within one month from the close of each half year, (i.e. 31st March and on 30th September), host a soft copy of its unaudited financial results on its website ( / www. QuantumMF.com). Further, the Fund shall publish an advertisement disclosing the hosting of such unaudited half yearly financial results on their website, in at least one national English daily newspaper and a regional newspaper published in the language of the region where the Head Office of the Mutual Fund is situated. The AMC / Mutual Fund shall be sent the Scheme wise annual report or an abridged summary thereof within four months from the date of closure of the relevant accounting year i.e. March 31 each year to all investors / unit holders as per the following mode: (i) by to the investors / Unit holders whose address is available with the AMC / Fund. (ii) in physical form to the investors / Unit holders whose address is not registered with the AMC / Fund and/or those Unit holders who have opted / requested for the same. The physical copies of the scheme wise annual report or abridged summary shall be made available to the investors / unit holders at the registered office of the AMC. A link of the scheme annual report or abridged summary thereof shall be displayed prominently on the website of the Fund and shall also be displayed on the website of Association of Mutual Funds in India (AMFI). 41

43 Associate Transactions Repurchase and Sale Price- Limits Taxation: The information is provided for general information only. However, in view of the individual nature of the implications, each investor is advised to consult his or her own tax advisors/authorised dealers with respect to the specific amount of tax and other implications arising out of his or her participation in the schemes. (Mention the tax rates as per the applicable tax laws) Please refer to Statement of Additional Information (SAI). The repurchase price shall not be lower than 93% of the NAV and the sale price shall not be higher than 107% of the NAV and the difference between the repurchase price and sale price shall not exceed 7% on the sale price. (a) Tax on Dividend Distributed (payable by the scheme) * 1. Resident Investors - NIL 2. Non Resident Investor NIL 3. Mutual Fund - NIL (b) Tax on Capital Gains * For all class of investors Long Term Nil 15%* Short Term (provided such units are sold to the Mutual Funds and are chargeable to STT) * The mentioned Tax Rates shall be increased by applicable surcharge & Cess. Equity Schemes will also attract Securities Transaction Tax 0.001% at the time of redemption and switch to other schemes. The Fund would also pay STT wherever applicable on the securities bought/sold. * The mentioned Tax Rates shall be increased by applicable surcharge, if any Education 2% and Secondary higher education 1%. This shall apply to all the categories of tax payers. For further details on Taxation please refer the clause of Taxation of SAI. Investor services Investor queries and complaints constitute an important voice of Investor, and to this effect the AMC has formulated a Grievance Redressal Policy (which can be viewed at which details the queries and complaint handling through a structured grievance redressal framework. Mr. Harshad Chetanwala- Head Customer Delight for any queries/ clarifications and Ms. Meera Shetty- Investor Relation Officer for any complaint / grievance can be contacted at Quantum Asset Management Company Private Limited 505, Regent Chambers, 5th Floor, Nariman Point, Mumbai , - CustomerCare@QuantumAMC.com, Telephone number / (Toll Free), Fax number (Toll Free). D. COMPUTATION OF NAV Market or Fair Value of Scheme's investments (+) Current Assets (-) Current Liabilities and Provisions Divided by No. of Units outstanding under Scheme on the valuation date. The NAV will be calculated and announced as of the close of every Business Day by 9:00 p.m. The valuation of the Scheme(s)' assets and calculation of the Scheme(s)' NAV shall be subject to audit on an annual basis and subject to such regulations as may be prescribed by SEBI from time to time. NAV shall be rounded off up to two decimal places. 42

44 IV. FEES AND EXPENSES This section outlines the expenses that will be charged to the schemes. A. NEW FUND OFFER (NFO) EXPENSES These expenses are incurred for the purpose of various activities related to the NFO like sales and distribution fees paid marketing and advertising, registrar expenses, printing and stationery, bank charges etc. No initial issue expenses were charged to the Scheme and the entire initial issue expense was borne entirely by the AMC. B. ANNUAL SCHEME RECURRING EXPENSES These are the fees and expenses for operating the scheme. These expenses include Registrar and Transfer Agent fee, marketing and selling costs, custody fees etc. These are the fees and expenses for operating the scheme. These expenses include Investment Management and Advisory Fee charged by the AMC, Registrar and Transfer Agents Fee, Custodian Fees and marketing and operations expenses etc. The estimated recurring expenses of the Scheme are as under: Expense Head % of daily Net Assets Investment Management and Advisory Fees Trustee fee Audit fees Custodian fees Registrar & Transfer Fees Marketing & Selling expense incl. agent commission Cost related to investor communications Cost of fund transfer from location to location Cost of providing account statements and dividend redemption cheques and warrants Costs of statutory Advertisements Cost towards investor education & awareness (at least 2 bps) ^ Service tax on expenses other than investment and advisory fees Service tax on brokerage and transaction cost Other expenses* Maximum total expense ratio (TER) permissible under Regulation 52 (6) (c) (i) Additional expenses for gross new inflows from specified cities under Regulation 52 (6A) (b) Up to 2.50% Up to 2.50% NIL Additional expenses under regulation NIL 52 (6A) (c) * as permitted under the Regulations. ^ Investor Education and Awareness initiatives As per Para F of the SEBI Circular No. CIR/IMD/DF/21/2012 dated September 13, 2012, the AMC shall annually set apart at least 2 basis points p.a. (i.e. 0.02% p.a.) on daily net assets of the Scheme within the limits of total expenses prescribed under Regulation 52 of SEBI (MF) Regulations for investor education and awareness initiatives undertaken by the Fund. The AMC has estimated that above expenses will be charged to the Scheme as permitted under Regulation 52 of SEBI (MF) regulations. For the actual current expenses being charged, the investor should refer to the website of the Mutual Fund viz. / As per Regulation 52(6)(c) of SEBI (MF) Regulations, the total expenses of the Scheme, including Investment Management and Advisory Fees shall be subject to following limits as specified below. Daily net assets % limit First ` 100 Crores 2.50 Next ` 300 Crores 2.25 Next ` 300 Crores 2.00 On balance of the 1.75 assets Investment Management and Advisory Fees: The Investment Management and Advisory fees charged by the AMC to scheme will be within / equal to the Total Expense Ratio Limit as prescribed by SEBI (MF) Regulations, as amended from time to time, with no sub-limit on the Investment Management and Advisory fees. Additional Expenses: In addition to the Maximum Total Expense Ratio as permissible under Regulation 52 of SEBI MF Regulations as amended from time to time, following additional expenses may be charged to the Scheme as mentioned in below. 43

45 a. Expenses not exceeding of 0.30 % of daily net assets if the new inflow from such cities as specified by the SEBI from time to time are at least 30 per cent of gross new inflows in the scheme or 15 per cent of the average assets under management (year to date) of the scheme whichever is higher. b. Expenses incurred towards different heads mentioned under sub-regulations 52 (2) i.e. Investment Management and Advisory Fees and 52 (4) i.e. recurring expense, not exceeding 0.20 per cent of daily net assets of to the scheme. c. Service Tax on investment and advisory fees of the Scheme. Investors are requested to note that currently Quantum Mutual Fund shall not charge any additional expenses to the Scheme(s) as mentioned in the sub - clause (a) (b) and (c) above. d. Brokerage and transaction costs which are incurred for the purpose of execution of trade and is included in the cost of investment, not exceeding 0.12 % for cash market transactions. As no additional expenses will be charged to the Scheme, the provisions relating to clawed back as prescribed in the SEBI (MF) Regulations will not be applicable. The maximum recurring expenses of the Scheme, including the investment management and advisory fee, together with additional expenses if any, shall not exceed the limits prescribed under Regulation 52 of the SEBI (Mutual Funds) Regulations 1996 read with aforesaid SEBI circular dated September 13, 2012, as explained above. Any excess over these specified ceilings would be borne by the AMC. ILLUSTRATION OF IMPACT OF EXPENSE RATIO ON SCHEME S RETURN: Opening NAV at the beginning of the year (`) (a) Closing NAV before charging expense at the end of the year (b) Scheme s gross returns for the year Total Expense Charged during the year (`) (c) NAV after charging expense (b-c) % Net Return to the Investor 11% The purpose of the above illustration is to explain the impact of expense ratio of the scheme. Above calculation are bases on assumed NAV and Expenses. The actual NAV, expenses and return on your investment may be more or less. C. LOAD STRUCTURE Load is an amount which is paid by the investor to subscribe to the units or to redeem the units from the scheme. Load amounts are variable and are subject to change from time to time. For the current applicable structure, please refer to the website of the AMC ( / or may call at (toll free no / ). Type of Load Entry Load Exit Load Load chargeable (as % of NAV) Not Applicable In terms of SEBI circular no. SEBI/IMD/CIR No. 4/ /09 dated June 30, 2009 has notified that, w.e.f. August 01, 2009 there will be no entry load charged to the schemes of the Mutual Fund and the upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor. Quantum Mutual Fund does not charge Entry Load since inception. Nil The investor is requested to check the prevailing load structure of the scheme before investing. Any imposition or enhancement in the load shall be applicable on prospective investments only. The above mentioned load structure shall be equally applicable to the special facilities such as Systematic Withdrawal Plan (SWP) / Systematic Transfer Plan (STP) and Switches etc. However, no load shall be charged for switching between options within the Scheme. However the AMC shall not charge any load on issue of bonus units and units allotted on reinvestment of dividend for existing as well as prospective investors. For any change in load structure AMC will issue an addendum which shall be attached to the SID and key information 44

46 memorandum (KIM) and display it on the website/investor Service Centres. The introduction of exit load alongwith the details may be stamped in the acknowledgement slip issued to the investors on submission of the application form and may also be disclosed in the statement of accounts issued after introduction of such loads. Further a public notice shall be given in respect of such changes in one English daily newspaper having nationwide circulation as well as in a newspaper published in the language or the region where the head office of the mutual fund is situated. The exit load charged, if any shall be credited to the Scheme net of service tax. Investors are requested to note that The Mutual Fund has credited the exit load to the all it s Scheme(s) since inception. However, Quantum Mutual Fund does not pay any commissions to the distributors and amount from Exit Load / Contingent Deferred Sales Charges collected by the Scheme is credited to the revenue account of the Scheme since inception. The Fund may charge the load within the stipulated limit of 7% and without any discrimination to any specific group of unit holders. However, any change at a later stage shall not affect the existing unit holders adversely. D. TRANSACTION CHARGES: In accordance with the SEBI Circular No. Cir / IMD / DF/13/2011 dated August 22, 2011, the AMC is allowed to deduct transaction charges of ` 100 for existing investors and ` 150 for a first time investor per subscription of `10,000 /- and above for the transaction / application received through distributors. The transaction charges shall be deducted by the AMC from the subscription amount received from the investor and paid to the distributor and the balance will be invested in the Scheme. Investors are requested to note that Quantum Mutual Fund is a direct to investor s Mutual Fund and no transaction charges shall be deducted from the investment amount for transactions / applications received from the distributor and full subscription amount will be invested in the Scheme. E. WAIVER OF LOAD FOR DIRECT APPLICATIONS Not Applicable Pursuant to SEBI circular no. SEBI/IMD/CIR No.4/ /09 dated June 30, 2009 no Entry Load shall be charged for all mutual fund schemes. Therefore, the procedure for waiver of load for direct applications is no longer applicable. 45

47 V. RIGHTS OF UNITHOLDERS Please refer to SAI for details. VI. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY 1. Disclosures regarding top 10 monetary penalties and action(s) taken during the last three years against foreign Sponsor(s) may be limited to the jurisdiction of the country where the principal activities (in terms of income / revenue) of the Sponsor(s) are carried out or where the headquarters of the Sponsor(s) is situated. : Not Applicable 2. Details of all monetary penalties imposed and/ or action taken during the last three years or pending with any financial regulatory body or governmental authority, against Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company; for irregularities or for violations in the financial services sector, or for defaults with respect to shareholders or debenture holders and depositors, or for economic offences, or for violation of securities law. Details of settlement, if any, arrived at with the aforesaid authorities during the last three years shall also be disclosed. Quantum Advisors Pvt Ltd (Sponsor): Nil. Trustee Company: Nil AMC: Nil 3. Details of all enforcement actions taken by SEBI in the last three years and/ or pending with SEBI for the violation of SEBI Act, 1992 and Rules and Regulations framed there under including debarment and/ or suspension and/ or cancellation and/ or imposition of monetary penalty/adjudication/enquiry proceedings, if any, to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel (especially the fund managers) of the AMC and Trustee Company were/ are a party. The details of the violation shall also be disclosed. Quantum Advisors Pvt Ltd (Sponsor): Nil. Trustee Company: Nil AMC: Nil 4. Any pending material civil or criminal litigation incidental to the business of the Mutual Fund to which the Sponsor(s) and/ or the AMC and/ or the Board of Trustees /Trustee Company and/ or any of the directors and/ or key personnel are a party should also be disclosed separately. Trustee Company: Nil AMC: Nil Associates: Nil Quantum Advisors Pvt Ltd (Sponsor): Nil except the following: The Sponsor has filed a suit against a Company by the name of Quantum Securities Private Limited (QSPL) in July, 2002 in the Mumbai High Court for passing of the Company s name Quantum as its own, resulting in confusion in the minds of general public. The Company could not obtain interim relief sought by it, on the ground of delay as QSPL was using the word Quantum in its Company name since the year The said suit is however still pending for final disposal. The mark Quantum has been registered by the Company in Class 16 under number B since 14th September, The said registration has been continuously renewed and is presently in force. The Company has also applied for registering the Quantum mark as a service mark under Class 36 for use in respect of financial services. 5. Any deficiency in the systems and operations of the Sponsor(s) and/ or the AMC and/ or the Board of Trustees/Trustee Company which SEBI has specifically advised to be disclosed in the SID, or which has been notified by any other regulatory agency, shall be disclosed. Quantum Advisors Pvt Ltd (Sponsor): Nil Trustee Company: Nil AMC: Nil 46

48 Notwithstanding anything contained in this Scheme Information Document, the provisions of the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be applicable. For and on behalf of Board of Directors of Quantum Asset Management Company Private Limited Sd/- Jimmy A Patel Chief Executive Officer Place: Mumbai Date: May 27,

49